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For a rapidly growing Germancompany, the growth rate is projected to be 25% for the next three years. At the end of 3 years, the growth rate is expected to settle to 5% and remain so for foreseeable future. The company has recently paid a dividend of €3.5. Assume that the investors' required rate of return for the company's shares is 17%. Given the information, please answer the following:

What is the value of this company's share?

If the current market price of the share is €35, is the share a desirable purchase?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92783146

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