{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-22T16:13:03-04:00", "answer_date": "2024-05-22 16:13:03", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1521585", "url": "\/study-help\/questions\/10-1-point-do-mohan-gupta-is-the-portfolio-manager-1521585", "question_creation_date_js": "2024-05-22T16:13:03-04:00", "question_creation_date": "May 22, 2024 04:13 PM", "meta_title": "[Solved] 10 1 point -DO Mohan Gupta is the portfol | SolutionInn", "meta_description": "Answer of - 10 1 point -DO Mohan Gupta is the portfolio manager of an India-based equity fund. He is analyzing the value of Tata C | SolutionInn", "meta_keywords": "10,1,point,-,mohan,gupta,portfolio,manager,india-based,equity,fund,analyzing", "question_title_h1": " 10 1 point -DO Mohan Gupta is the portfolio manager of an India-based equity fund. He is analyzing the value of Tata Chemicals Ltd.", "question_title": " 10 1 point -DO Mohan Gupta is the portfolio manager of", "question_title_for_js_snippet": "10 1 point DO Mohan Gupta is the portfolio manager of an India based equity fund He is analyzing the value of Tata Chemicals Ltd Tata Chemicals is India's leading manufacturer of inorganic chemicals, and also manufactures fertilizers and food additives Gupta has concluded that the DDM is appropriate to value Tata Chemicals During the last five years (fiscal year ending 31 March 2004 to fiscal year ending 31 March 2008), the company has paid dividends per share of Rs 5 50, 6 50, 7 00, 8 00, and 9 00, respectively These dividends suggest an average annual growth rate in DPS of just above 13 percent Gupta has decided to use a three stage DDM with a linearly declining growth rate in Stage 2 He considers Tata Chemicals to be an average growth company, and estimates Stage 1 (the growth stage) to be 6 years and Stage 2 (the transition stage) to be 10 years He estimates the growth rate to be 14 percent in Stage 1 and 10 percent in Stage 3 Gupta has estimated the required return on equity for Tata Chemicals to be 16 percent Estimate the current value of the stock using the H model (Do not round intermediate computations Round your final answer to two decimal places and do not include a currency symbol For example, if your answer is Rs89 1245, enter 89 12) Type your answer Previous Next", "question_description": "\"image", "transcribed_text": "10 1 point -DO Mohan Gupta is the portfolio manager of an India-based equity fund. He is analyzing the value of Tata Chemicals Ltd. Tata Chemicals is India's leading manufacturer of inorganic chemicals, and also manufactures fertilizers and food additives. Gupta has concluded that the DDM is appropriate to value Tata Chemicals. During the last five years (fiscal year ending 31 March 2004 to fiscal year ending 31 March 2008), the company has paid dividends per share of Rs. 5.50, 6.50, 7.00, 8.00, and 9.00, respectively. These dividends suggest an average annual growth rate in DPS of just above 13 percent. Gupta has decided to use a three-stage DDM with a linearly declining growth rate in Stage 2. He considers Tata Chemicals to be an average growth company, and estimates Stage 1 (the growth stage) to be 6 years and Stage 2 (the transition stage) to be 10 years. He estimates the growth rate to be 14 percent in Stage 1 and 10 percent in Stage 3. Gupta has estimated the required return on equity for Tata Chemicals to be 16 percent. Estimate the current value of the stock using the H-model. (Do not round intermediate computations. Round your final answer to two decimal places and do not include a currency symbol. For example, if your answer is Rs89.1245, enter 89.12) Type your answer... Previous Next", "related_book": { "title": "Equity Asset Valuation", "isbn": "470571439, 470571438, 9781118364123 , 978-0470571439", "edition": "2nd Edition", "authors": "Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1717.jpg", "uri": "\/textbooks\/equity-asset-valuation-2nd-edition-1717", "see_more_uri": "\/textbooks\/business-supply-chain-management-3405" }, "free_related_book": { "isbn": "1846639085", "uri": "\/textbooks\/documents-on-and-from-the-history-of-economic-thought-and-methodology-1st-edition-978-1846639081-285258", "name": "Documents On And From The History Of Economic Thought And Methodology", "edition": "1st Edition" }, "question_posted": "2024-05-22 16:13:03", "see_more_questions_link": "\/study-help\/questions\/business-accounting-2024-September-21", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/michael-jackson-was-hired-in-january-as-the-new-operations-365097", "description": "Michael Jackson was hired in January as the new Operations Manager for Just Collect It, Inc, a Texas toy assembly plant also known as JCI. 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