Question

Q5a. Calculate annual growth rates of dividends for ANZ (g ANZ) and for WOW (g wow) using \text { the formula }\left(g_{t}=\frac{D_{t}}{D_{t-1}}-1\right) and the average annual growth rate for ANZ

and WOW. Note: provide final answer in 4 decimal places Q5b. Assume constant growth model holds. The effective annualized return of ANZ and wow are 11.70% and 3.89% respectively. Find the share price of ANZ and WOW at time 2020 if the average growth rate is expected to decline for ANZ but increase for WOW from time 2020 onward infinitely. Note: provide final answer in 4 decimal places

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