Answer the questions from the information provided. Use the Gordon growth model to estimate the cost of the ordinary shares of AMN Limited from the information provided below. 5.1 INFORMATION The present value of an AMN Limited ordinary share is R60, the expected dividend at the end of Year 1 is R5 and the expected growth rate in dividends is 11% p.a.

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Q: Assume that Cola Co. has a share price of $42.88. The firm will pay a dividend of $1.14 in one year,…

A: Share price today (P0) = $42.88 D1 = $1.14 Growth rate (g) = 6.6% r = 8.4%

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Q: 2

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Q: A company is expected to pay a dividend of $6.73 in the following period. If the expected growth…

A: D1 = $6.73 Growth rate (g) = 4% r = 11%

Q: Suppose you know that a company's stock currently sells for $51.48 per share and the required return…

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A: Formula:

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