Homework Help: mba

Posted by rakesh on Tuesday, September 27, 2011 at 4:23am.

Antique Arts Company would pay Rs. 2.50 as dividend per share for the next year
and is expected to grow indefinitely at 12%. What would be the equity value if the investor require 20% return?

mba - Akhilesh, Friday, September 30, 2011 at 3:05am
P=D/(R-g)

P=2.5/(0.2-0.12)=31.25

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