(d) Calculate the ex dividend share price predicted by the dividend growth model

(d) Calculate the ex pidend share price predicted by the pidend growth model and discuss the company’s

view that share price growth of at least 8% per year would result from expanding into the retail camera

market. Assume a cost of equity capital of 11% per year. (6 marks)

(d) The pidend growth model calculates the ex p share price from knowledge of the cost of equity capital, the expected growthrate in pidends and the current pidend per share (or next year’s pidend per share). Using the formula given in theformul