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Question 29 You have been asked by your employers to demonstrate your knowledge in business valuation process, by analyzing the value of Best Group Savings

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Question 29 You have been asked by your employers to demonstrate your knowledge in business valuation process, by analyzing the value of Best Group Savings and Loans Company (BGSLC). The company paid a dividend of GH 250,000 this year. The current return to shareholders of companies in the same industry as BGSLC is 12%, although it is expected that an additional risk premium of 2% will be applicable to BGSLC, being a smaller and unquoted company. Compute the expected valuation of BGSLC, if: i. The current level of dividend is expected to continue into the foreseeable future ii. The dividend is expected to grow at a rate 4% par into foreseeable future iii. The dividend is expected to grow at a 3% rate for three years and 2% afterwards

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