EPGP Ltd paid a dividend of Rs. 4 in the most recently completed financial year. Its earnings and dividends are expected to grow at 8% over the next one year. If investors expect a return of 20% from this firm’s stock, then at what price should this firm’s stock sell now?

Answer rating: 100% (QA)

The value of a stock can be estimated using the Gordon Growth Model which is given by P0 D01 gr g W... View the full answer