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(a) XYZ ltd share expected to provide a dividend of Rs.4.00. The dividend has grown over the past 5 years at 5% per year and

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(a) XYZ ltd share expected to provide a dividend of Rs.4.00. The dividend has grown over the past 5 years at 5% per year and continue to grow. Estimate the intrinsic value of the equity share if the required rate is 15 percent? (b) An investor bought a share and expects the share to pay a dividend of Rs. 5 next year, and would sell the share at an expected price of Rs. 28 at the end of the year. If required rate of return (ke) is 14 per cent, how much should he pay for the share today? (b) An investor bought a share and expects the share to pay a dividend of Rs. 5 next year, and would sell the share at an expected price of Rs. 28 at the end of the year. If required rate of return (ke) is 14 per cent, how much should he pay for the share today

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