Equity share of X Ltd is available in the market at a price of 45 per share,
Question:
Equity share of X Ltd is available in the market at a price of ₹45 per share, whereas its face value is ₹5 per share. During the current year, the company paid 66.66% dividend that has a track record of constant growth rate of 5% p.a. forever. What is the value of this share for an investor who expects a return of
(i) 17% and
(ii) 22.50%?
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