Question: Task 17 You must value a share via the Gordon Growth Model and have the following information: Risk-free interest rate is 1%. The company's earnings

Task 17

You must value a share via the "Gordon Growth Model" and have the following information:

  • Risk-free interest rate is 1%.

  • The company's earnings per share are expected to be SEK 30 this year.

  • Last year's share dividend was SEK 25 per share, which is expected to increase by 10% this year

  • The growth rate of the share dividend after the dividend for the year is expected to be 6% per year.

  • The industry's P / E ratio is 18 but is expected to increase to 22 during the year.

  • Your calculated risk-adjusted return requirement is 8% + risk-free interest.

  • The analysts' overall assessment is a share price of SEK 500 in three years.

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