Required return on the company shares


Problem:

IGT INC just paid a dividend of 2.00 per share. Analysts believe dividends will grow 18% for the next 5 years and at 5% after that.

Requirement:

What is the value of a share if the required return on the company's shares is 11%?

Note: Please describe comprehensively and provide step by step solution.

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Accounting Basics: Required return on the company shares
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