Q$3($b$)$ The top management of Sunshine Limited has hired an advisor,

Rammana to advise the company about its valuation of share for FP

$($Followup Public Offer$).$ Based on the financial statements provided to

Rammana, he has collected the following information and the estimates h

has made about the Company:

Current dividend per share is Rs$.5.$

Forecasted expected growth in dividend: First year $-13\%,$ second year.

$12\%,$ third year $-11\%,$ fourth year $10\%,$ fifth year $-9\%,$ sixth year $-8\%$

and $7\%$ in seventh year and thereafter for ever.

Beta of Sunshine Limited $-1\mathrm{.}40$

Current Risk$-$Free Rate $-6\mathrm{.}75\%$

Market Rate of Return $-15\mathrm{.}50\%$

Assuming that you are assisting Mr$.$ Rammana, you are required to

determine the intrinsic value of the share. If the currerit market price is Rs$.$

$52$ per share, then do you think that share is undervalued?