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Question 2: Shivam Rubber Ltd. is expected to pay a dividend of 20% in the upcoming year on a share with a face value of
Question 2: Shivam Rubber Ltd. is expected to pay a dividend of 20% in the upcoming year on a share with a face value of Rs. 10. Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 13%. The share of the Company has a beta of 1.2. You are required to determine the intrinsic value of the share of the company and give your reasoning for arriving at the value
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