Question
Ink Ltd's historical earnings and dividends paid over the last five years are as follows: 2021 2022 3.3 3.5 2.7 2.8 Year EPS (sh)
Ink Ltd's historical earnings and dividends paid over the last five years are as follows: 2021 2022 3.3 3.5 2.7 2.8 Year EPS (sh) DPS (sh) 2018 3 2.2 2019 3.4 2.3 2020 3.6 2.5 The investor's minimum required rate of return is 18% Required: i. ii. iii. The historical annual dividend growth rate The Current intrinsic value of each share (2 Marks) Suppose the current market price of each share is sh.45. Could you advise a prospective investor to buy the shares of this firm and why? (2 Marks) (2 Marks)
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