Market price of an equity share of face value 10 is 125 per share. Expected dividend is
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Market price of an equity share of face value ₹10 is ₹125 per share. Expected dividend is 125% for the next year that is likely to grow at a constant rate of 10% p.a. forever. If an investor expects 15% returns on his/her investment, suggest him/her whether he/she should buy it or not. If yes, then at what price?
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By using dividend capitalization with constant growth model the value can be ...View the full answer
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