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An investor wants to invest in an equity share of XYZ Company. The companys last earnings per share (EPS) was P 120 per share and
An investor wants to invest in an equity share of XYZ Company. The companys last earnings per share (EPS) was P 120 per share and dividend payout ratio is 20%. The required rate of return from equity investment is 150%. Calculate the intrinsic value of equity if
A. There is no growth in dividend
B. Dividends are expected to grow at a constant rate of 6% per annum.
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