Royal Industries had declared a dividend or Rs 5 per share last year . Dividend is expected

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Royal Industries had declared a dividend or Rs 5 per share last year . Dividend is expected to grow at 8% p.a. for next three years, and thereafter at 5% in perpetuity. Required return for equity shareholders is 16%. Calculate the Fair Value of Royal Industries share.

Posted Date: May 10, 2024 03:00 AM

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Royal Industries had declared a dividend or Rs 5 per share last year . Dividend is expected

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Expert Answer:

To calculate the fair value of Royal Industries share we can use the dividend discount model DDM for... View the full answer

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