This is a subjective question, hence you have to write your answer in the Text-Field given below. A stock of X Co. just gave a dividend of Rs. 5 per share. It is expected that dividends will grow by 6.00% over the next three years (0-1, 1-2, 2-3 years). Beyond three years, X Co. will be retaining 40% of the earnings and investing in a project which is expected to return a 10% p.a. (EAR) return on equity (ROE) from the investment. This retention ratio of 40% is going to continue forever thereafter, and the ROE is also expected to continue at 10% p.a. EAR forever thereafter. Hence, the growth rate in dividends beyond three years till perpetuity will be 4% p.a. (EAR). The relevant cost of equity capital is estimated at 12.00% p.a. compounded annually. What is the intrinsic value of the stock of X Co.? If the market price per share of the stock is Rs. 100, what should the investment recommendation be related to stock X (buy or sell)? [5] W This is a subjective question, hence you have to write your answer in the Text-Field given below. A stock of X Co. just gave a dividend of Rs. 5 per share. It is expected that dividends will grow by 6.00% over the next three years (0-1, 1-2, 2-3 years). Beyond three years, X Co. will be retaining 40% of the earnings and investing in a project which is expected to return a 10% p.a. (EAR) return on equity (ROE) from the investment. This retention ratio of 40% is going to continue forever thereafter, and the ROE is also expected to continue at 10% p.a. EAR forever thereafter. Hence, the growth rate in dividends beyond three years till perpetuity will be 4% p.a. (EAR). The relevant cost of equity capital is estimated at 12.00% p.a. compounded annually. What is the intrinsic value of the stock of X Co.? If the market price per share of the stock is Rs. 100, what should the investment recommendation be related to stock X (buy or sell)? [5] th