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11. ABC earnings and dividends have been growing at a rate of 18% per annum. Its growth rate is expected to continue for 4
11. ABC earnings and dividends have been growing at a rate of 18% per annum. Its growth rate is expected to continue for 4 years. After that the growth will fall to 12% for next 4 years. Thereafter the growth rate is expected to be 6% for ever. If the last divided per share was Rs. 2 and the investors' rate of return on ABC is 15%. What is the intrinsic value per share?
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
