Question
Mega Minings earnings and dividends have been growing at a rate of 7% per annum. This growth rate is expected to continue for 6 years
Mega Minings earnings and dividends have been growing at a rate of 7% per annum. This growth rate is expected to continue for 6 years (i.e. 2020 to 2025). After that, the growth rate will increase to 10% for the subsequent 5 years until 2030. Thereafter, the growth rate is expected to be consistent at 2% forever. If the last dividend per share was N$70.00 and the investors required rate of return on Mega Minings equity is 9%: Required: Compute the current intrinsic value per share of Mega Mining from 2020 to beyond 2031 (forever)? Round off your final answer to the nearest whole number
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