Club Auto Parts' last dividend, D0, was R0.50, and the company expects to experience no growth for the next 2 years.However, Club will grow at an annual rate of 5 percent in the third and fourth years, and, beginning with the fifth year, it should attain a 10 percent growth rate which it will sustain thereafter.Club has a required rate of return of 12 percent.What should be the price per share of Club shares at the beginning of the third year, P2?

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The Answer of Club Auto Parts' last dividend, D0, was R0.50, and the company expects to experience no growth for the next 2 years.However, Club will grow at an annual rate of 5 percent in the third and fourth years, and, beginning with the fifth year, it should attain a 10 percent growth rate which it will sustain thereafter.Club has a required rate of return of 12 percent.What should be the price per share of Club shares at the beginning of the third year, P2?

Club Auto Parts' Last Dividend, D0, Was R0