Kakuzi Ltd. reported EPS of Shs. 4 in the last financial period. The earnings are expected to
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Kakuzi Ltd. reported EPS of Shs. 4 in the last financial period. The earnings are expected to grow at the rate of 10% p.a. for 6 years. The price earnings ratio (PIE) of the company at the end of the 6th year period is 20. The required rate of return is 15%. Calculate the theoretical value of this share for an investor who intends to hold on to the shares for 6 years. The dividend payout ratio is 60%.
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