Question: HISTORICAL DIVIDEND PAYOUT PATTERN 2016 2017 2018 2019 2020 EPS 6.78 7.6 12.48 13.9 14 Payout 20.00% 25.00% 30.00% 35.00% 30.00% as per Par Value

HISTORICAL DIVIDEND PAYOUT PATTERN

2016 2017 2018 2019 2020

EPS 6.78 7.6 12.48 13.9 14

Payout 20.00% 25.00% 30.00% 35.00% 30.00%

as per Par

Value @ 10

DIVIDEND 1.356 1.9 3.744 4.865 4.2

PER SHARE

PROJECTED

2020 2021 2022 2023 2024 2025

Sales growth - 12.00% 10.00% 8.00% 10.00% 12.00%

NET SALES 89.54 100.28 110.31 119.14 131.05 146.78 ( IN MILLIONS)

Net Margin - 20.00% 19.50% 21.50% 23.00% 22.50%

NET PROFIT - 20.06 21.51 25.61 30.14 33.03 (IN MILLIONS)

NO OF - 1335.30 1335.30 1335.30 1335.30 1335.30

SHARES

COST OF EQUITY = 14.35%

DIVIDEND GROWTH RATE = 5.50%

MARKET VALUE PER SHARE = 62.08

REQUIRED -

1- USE DIVIDEND DISCOUNT MODEL TO CALCULATE NEXT FIVE YEAR DIVIDEND.

2-INTRINSIC VALUE OF EACH PROJECTED YEAR.

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