Ms.Manners Catering (MMC) has paid a constant R1.50 per share dividend to its ordinary shareholders for the past 25 years.MMC expects to continue this policy for the next two years, and then begin to increase the dividend at a constant rate equal to 2 percent per year into perpetuity.Investors require a 12 percent rate of return to purchase MMC's ordinary shares.What is the market value of MMC's ordinary shares?
A) R14.73
B) R15.00
C) R15.58
D) R15.30
E) R12.20
Correct Answer:
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