Question: Suppose you have been tasked with determining the intrinsic value of Bamboocha Inc. by your boss. You have been provided with the following information: Bamboocha

Suppose you have been tasked with determining the intrinsic value of Bamboocha Inc. by your boss. You have been provided with the following information: Bamboocha declared a dividend of R2.50 and it's investors expect a return of 14.82%. The long-term growth rate is expected to be 5.43% while the short-term growth rate for the period of 7 years is expected to be 16.97%. If you are sceptical about the unrealistic assumption of the two stage dividend discount model that there is no intervening period between the high growth phase and the long-term growth phase, determine Bamboocha's intrinsic value per share.

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 Finance Questions!