Virtual Teach Limited has just paid a dividend of $1.50 per share. The company is expected to have a stronggrowth of 12% per annum for the next two...
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<ol><li><strong>Virtual Teach Limited has just paid a dividend of $1.50 per share. The company

is expected to have a strong growth of 12% per annum for the next two years. However, after this two-year period, the company is expected to grow in line with the overall economy's growth of 4% per annum. If the required rate of return is 15%, what is the expected fair value of Virtual Tech's shares based upon a dividend-based model?      </strong></li><li><strong>Discuss thepros and cons of using a dividend-based model to evaluate a stock.  </strong></li></ol>

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