Stock ABC Ltd. currently trades in the market for Rs 500 . The stock is expected to grow at 15% per annum (annual compounding) for the next several years (foreseeable future). The required rate of return on the stock is 18% per annum (annual compounding). 

If you wish to hold the stock for 3 years, what price can you expect to sell the stock at the end of 3 years?

Answer rating: 100% (QA)

To calculate the expected selling price of the stock at the end of 3 years you can u... View the full answer