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Consider the following scenario for Bait Switch Limited (BSW Ltd). BSW Ltd's most recently paid annual dividend was $0.95 per ordinary share. BSW Ltd ordinary

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Consider the following scenario for Bait Switch Limited (BSW Ltd). BSW Ltd's most recently paid annual dividend was $0.95 per ordinary share. BSW Ltd ordinary shares currently sell for $20 in the stock market. Estimated constant growth rate of earnings and dividends is 1.5% per year, while the required rate of return (based on CAPM) is 6.7% per year. \begin{tabular}{l|c|} \hline What is your valuation of the BSW Ltd's ordinary share? & Choose... \\ Based on your estimate of the share value, would you buy BSW & $18.54 \\ \hline Ltd's shares in the stock market? & $20.95 \\ \hline \end{tabular}

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