Oscar and Ravin company expects to maintain its present super normalgrowth of 20% per annum for year one, 12% growth for year two and 8% growth for year three, thereafter its growth rate is expected to slow down to 5% per annum as in the industry. Stockholders required rate of return is 12% per annum. The last dividend was $2.50.

(a) What is the worth of Oscar and Ravin Company's stock today?

(b) Its expected rate of return this time, clearly indicating the dividend yield and capital gain yield.

Answer rating: 100% (QA)

a What is the worth of Oscar and Ravin Companys stock today Oscar Investments Share Price Stock Analysis Recos 473 000 000BSE Live As On 25 Nov 2019 1200 PM IST Sector Financial ServiIndustry Financia... View the full answer