The followings are information about three different companies. If an investor is having a required return of 12%, find the intrinsic value of each firm by using the appropriate valuation method. Darius Elliot's Freddie Holding Group Incorporation Last year's RM1.85 RM1.50 RM2 dividend (per share) Information on the The will Expected 5% in: dividend is The dividend dividend next dividend expected to remain the grow by same (no growth) indefinitely Year 1: RM2.13 Year 2: RM2.45 Year 3: RM2.81 Year 4: RM3.24 Year 5: RM3.72 Year 5 and beyond: it will grow by 5%

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 followings are information about three different companies. If an investor is having a
required return of 12%, find the intrinsic value of each firm by using the appropriate valuation
method.
Darius
Elliot's
Freddie
Holding
Group
Incorporation
Last
year's RM1.85
RM1.50
RM2
dividend
(per share)
Information on the The
will Expected
5% in:
dividend
is The
dividend
dividend
next dividend
expected to remain the grow
by
same (no growth)
indefinitely
Year 1: RM2.13
Year 2: RM2.45
Year 3: RM2.81
Year 4: RM3.24
Year 5: RM3.72
Year 5 and beyond:
it will grow by 5%
Transcribed Image Text:The followings are information about three different companies. If an investor is having a required return of 12%, find the intrinsic value of each firm by using the appropriate valuation method. Darius Elliot's Freddie Holding Group Incorporation Last year's RM1.85 RM1.50 RM2 dividend (per share) Information on the The will Expected 5% in: dividend is The dividend dividend next dividend expected to remain the grow by same (no growth) indefinitely Year 1: RM2.13 Year 2: RM2.45 Year 3: RM2.81 Year 4: RM3.24 Year 5: RM3.72 Year 5 and beyond: it will grow by 5%
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