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A company has declared a dividend of Dh. 3..00 receivable at the end of the current year. The earning of the company are growing at
A company has declared a dividend of Dh. 3..00 receivable at the end of the current year. The earning of the company are growing at 12%.
(i) What is the intrinsic value of this share? the required rate of return or cost of equity capital is 15%.
(ii) What is would be the investors holding period gain if the investor purchases the share from the market now and sells it after 1 year receiving the dividend.
(iii) What is the dividend yield of the share?
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