Master of Business Administration - MBA Semester 2 MB0045 - Financial Management - 4 Credits (Book ID: B1134) Assignment Set- 1 (60 Marks) Note: Each...

A company’s earnings and dividendsare growing at the rate of 18% pa. The growthrate is expected to continue for 4 years. After 4 years, from year 5 onwards, the growthrate will be 6% forever. If the dividend per share last year was Rs. 2 and the investorsrequired rate of return is 10% pa, what is the intrinsic price per share or the worth of oneshare