Question: answer fast in 5 mins The current dividend on an equity share of Krishnadevaraya Limited is Rs.8.00 on an earnings per share of Rs. 30.00
The current dividend on an equity share of Krishnadevaraya Limited is Rs.8.00 on an earnings per share of Rs. 30.00 Assume that the dividend per share will grow at the rate of 20 percent per year for the next 5 years. Thereafter, the growth rate is expected to fall and stabilise at 12 percent. Investors require a return of 15 percent from Krishnadevaraya's equity shares. What is the intrinsic value of Krishnadevaraya's equity share?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
