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Question 1 Tesco plc. is currently paying 2.50 per share as dividend to its shareholders....

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Finance

Question 1 Tesco plc. is currently paying 2.50 per share as dividend to its shareholders. It is expected that dividends will grow by 2% per year forever. Tesco plc's rate of return on the share is 8%. Estimate the market price of Tesco plc.'s share. If the current share price is 40, what would you conclude about the share?

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