Kakuzi Ltd. reported EPS of Shs. 4 in the last financial period. The earnings are expected to grow at the rate of 10% p.a. for 6 years. The price earnings ratio (PIE) of the company at the end of the 6^th year period is 20. The required rate of return is 15%. Calculate the theoretical value of this share for an investor who intends to hold on to the shares for 6 years. The dividend payout ratio is 60%.            

Answer rating: 100% (QA)

EPSShs 4 Earnings growth rate10 PE ratio at the ... View the full answer