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Karas Ltd.'s earnings and dividends have been growing at a rate of 9% per annum. This growth rate is expected to continue for 4 years
Karas Ltd.'s earnings and dividends have been growing at a rate of 9% per annum. This growth rate is expected to continue for 4 years (i.e. 2022 to 2025). After that the growth rate will increase to 10.5% for the next 4 years until 2029 . Thereafter, the growth rate is expected to be consistent at 12% forever. If the last dividend per share was N$7.00 and the investors' required rate of return on Karas Ltd.'s equity is 18% : 4.1. Compute the value per share of Karas Ltd for the first four years? (4 Marks) 4.2. What is the value per share of Karas Ltd from 2022 until 2025? (4 Marks) 4.3. What is the value per share of Karas Ltd if the growth rate remains constant at 8% from 2022 to 2025 and beyond (forever)
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