A company just paid dividends of R2.00 per share. Assume that the dividends will grow by 20% per year during the next two years. After that, growth is expected to level off to a constant growth rate of 10% per year. The required rate of return is 12%. 

Calculate the share's intrinsic value using the two stage dividend growth model?

Answer rating: 100% (QA)

SOLUTION The twostage dividend growth model can be used to calculate the intrinsic value of a share ... View the full answer