The following information is collected for Hilarious Ltd, a listed company in Australia: Risk-free rate 6.20% Market Risk Premium 2.60% Beta of Share 1.7 Last Dividend paid $3.20 (assume dividend only paid annually by Hilarious) Forecast dividend growth rate 4.50% Current Price of ordinary share $52.00 Required: Value an ordinary share of Hilarious Ltd using the Gordon Constant Growth Dividend Model and decide if you would recommend a purchase of a batch of shares in this company at current price level. Note that market share price will be adjusted to its intrinsic value. As a result, the share will increase in value at the marketplace.
The following information is collected for Hilarious Ltd, a listed company in
Australia:
Risk-free rate 6.20%
Market Risk Premium 2.60%
Beta of Share 1.7
Last Dividend paid $3.20 (assume dividend only paid annually by Hilarious)
Current Price of ordinary share $52.00
Required:
Value an ordinary share of Hilarious Ltd using the
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