A Share Has a Dividend of D0 = R5

A share has a dividend of D0 = R5.The dividend is expected to grow at a 20 percent annual rate for the next 10 years, then at a 15 percent rate for 10 more years, and then at a long-run normal growth rate of 10 percent forever.If investors require a 10 percent return on this share, what is its current price?

A) R100.00
B) R82.35
C) R195.50
D) R212.62
E) The data given in the problem are internally inconsistent, i.e., the situation described is impossible in that no equilibrium price can be produced.