Question
Mega Minings earnings and dividends have been growing at a rate of 17% per annum. This growth rate is expected to continue for 6 years
Mega Minings earnings and dividends have been growing at a rate of 17% per annum. This growth rate is expected to continue for 6 years (i.e. 2020 to 2025). After that, the growth rate will decrease to 10% for the subsequent 5 years until 2030. Thereafter, the growth rate is expected to be consistent at 3.5% forever. If the last dividend per share was N$123.00 and the investors required rate of return on Mega Minings equity is 9%: Required: Compute the present value per share of Mega Mining from 2031 and beyond? Round off your final answer to the nearest whole number.
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