Question
For your Investment Management course you need to find the intrinsic value of Renata Pharmaceuticals. From the annual report you have identified that earnings of
For your Investment Management course you need to find the intrinsic value of Renata Pharmaceuticals. From the annual report you have identified that earnings of 2021 are TK3 and retention ratio is 65%. You expected that dividend will grow at a rate of 10% for next 2 years, 8% for next 3 years and 5% thereafter. Your group member has identified the treasury bill rate in BD is 3%, market risk premium is 8%. In addition, Renata Pharmaceuticals is 30% more risky than market. On February 28, 2022 the market price of Renata Pharmaceuticals is TK 20. What should you do?
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