Question: ABC Ltd has just now declared dividends of $ 6.15 per share. It is estimated that their dividends would grow @ 8% p.a. for the

ABC Ltd has just now declared dividends of $ 6.15 per share. It is estimated that their dividends would grow @ 8% p.a. for the next 8 years, then @ 6% p.a. for the next 3 years and @ 2% p.a thereafter.

The rate of interest or the discount rate is estimated at 12% p.a. for the next 5 years, 9% for next 4 years and 7% thereafter.

Determine the Current share price of ABC Ltd

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

On 1 July 2021 Cindy Ltd acquired all the issued shares of Kaia Ltd Acquisition related expenses were 5000 On this date the equity and liabilities of Kaia Ltd included the following balances Share...

please it's urgent!! Thanku. 1 EC Construction Ltd. (EC) has 50.000 common shares outstanding in public hands. The balance of retained earnings at the beginning of 20X7 was $2.740.000. On 15 December...

Problem 1 On the morning of January 2, 2020, the Accounting Manager of ML Corporation, extracted a trial balance as of December 31, 2019, from the company's online accounting software. It was the...

December 6 Cheque no. 405 for $700.00 plus the appropriate taxes was issued for payment of purchases of office supplies made at Le Manuscrit Inc. December 6 Received a favorable credit report...

Tollmark Ltd. (Tollmark) is a private company founded 20 years ago by Karam Raynan. The company is in the medical supply industry, providing medical equipment to hospital and doctors offices....

TOLLMARK LTD . Tollmark Ltd . ( Tollmark ) is a private company founded 2 0 years ago by Karam Raynan. The company is in the medical supply industry. providing medical equipment to hospital and...

can i get the step of caluaction and not in excel Question 3 (25 marks) (a) Bronze Metals Inc. has a 12% bond with semi-annual coupons that is currently trading at $1,586.39. The bond will mature in...

Question 1 (20 marks) FNB Namibia Holdings Ltd is a financial services company and a holding company of the FNB Namibia group of companies. It is listed on the Namibian Stock Exchange (NSX) and it...

(a) Gold Metals Inc. has a 12% bond with semi-annual coupons that is currently trading at $1,586.39. The bond will mature in 25 years and has a face value of $1,000. (1) Compute the bond's current...

EC Construction Ltd. (EC) has 100,000 common shares outstanding in public hands. The balance of retained earnings at the beginning of 20X7 was $2,400,000. On 15 December 20X7 EC declared dividends of...

Figure shows a vertical uniform beam of length t is hinged at its lower end. A horizontal force F is applied to the beam at distance y from the lower end. The beam remains vertical because of a cable...

Firewatch Ltd, has been manufacturing and selling fire fighting equipment for the last two years. Firewatch Ltd commenced operations on 1 July, 2017 by issuing 500 000 $3.50 shares, payable in full...

SUBRITI ANSWER 3 . [ - / 1 Points ] Find the exact length of the curve. y = 2 3 ( 1 x 2 ) 3 2 , 0 x 4 Need Help?

Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 ............. Inventory ............. 120 units at $26 ..... 10 ............. Sale...

Financial statement data for years ending December 31 for Tango Company follows: a. Determine the inventory turnover for 2016 and 2015. b. Determine the number of days' sales in inventory for 2016...

The units of an item available for sale during the year were as follows: Jan. ... 1 ...... Inventory ........... 12 units at $5,400 $ 64,800 Aug. .. 7 ...... Purchase ............. 18 units at $6,000...

The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and...

Mirabella Cosmetics manufactures and sells a face cream to small ethnic stores in the greater New York area. It presents the monthly operating income statement shown here to George Lopez, a potential...

If demand is inelastic, The absolute value of price elasticity of demand is a) greater than the absolute value of the slope of the demand curve b) less than one c) one d) greater than one

1. Stephen M.R. Covey, author of The Speed of Trust, says that every employee in the organization should assume responsibility for building trust. Do you agree? Is this a realistic expectation?...

1. This chapter reveals that a persons needs serve as motivators toward achieving challenging goals. Analyze what you believe drives persons like Phelps, Cox, and Armstrong to achieve these extremes.

3. One of the books most powerful questions is What would you do if you were not afraid? As you look to your future and grasp the attitudes Spencer Johnson suggests, share your answer to that...