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?
P=D/(R-g)
P=2.5/(0.2-0.12)=31.25
and is expected to grow indefinitely at 12%. What would be the equity value if the investor require 20% return?
P=2.5/(0.2-0.12)=31.25