for the next 5 years. And after that it is assumed to have a g indefinitely. The dividend paid for the year is 3.2. The required is 20% and present price is Rs. 57. What is the intrinsic value of

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The return for ABC Company is 21% at present. This is assumed to continue
for the next 5 years. And after that it is assumed to have a growth @ 10%
indefinitely. The dividend paid for the year is 3.2. The required rate of return
is 20% and present price is Rs. 57. What is the intrinsic value of the stock?
Transcribed Image Text:The return for ABC Company is 21% at present. This is assumed to continue for the next 5 years. And after that it is assumed to have a growth @ 10% indefinitely. The dividend paid for the year is 3.2. The required rate of return is 20% and present price is Rs. 57. What is the intrinsic value of the stock?
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