# Question: Grape Plc. Pays Dividends That Are Expected To Grow At 5% Each Year. Dividends Will Stop Growing At The End Of Year 5, At Which Point The Firm Will Pay Out All Its Earnings As Dividends. The Next Dividend Will Be Paid One Year From Now At £10 And Its Earning Per Share (EPS) At The Time Will Be £15. If The Appropriate Discount Rate On Grape Plc.is …

Question: Grape Plc. Pays Dividends That Are Expected To Grow At 5% Each Year. Dividends Will Stop Growing At The End Of Year 5, At Which Point The Firm Will Pay Out All Its Earnings As Dividends. The Next Dividend Will Be Paid One Year From Now At £10 And Its Earning Per Share (EPS) At The Time Will Be £15. If The Appropriate Discount Rate On Grape Plc.is …

grape plc. pays dividends that are expected to grow at 5% eachyear. Dividends will stop growing at the end of year 5, at whichpoint the firm will pay out all its earnings as dividends. The nextdividend will be paid one year from now at £10 and its earning pershare (EPS) at the time will be £15. If the appropriate discountrate on Grape plc.is 8%, what is its fair market price of the sharetoday?