Question: Suppose you have been tasked with determining the intrinsic value of Bamboocha's 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's 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 13.55%. The long-term growth rate is expected to be 4.88% while the short-term growth rate for a period of 7 years is expected to be 22.74%. 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.
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