Question 3 MielLtd. is foreseeing a growth rate of 12% per annum in the next two years. The growth rate is likely to be 10% for the third and fourth year. After that the growth rate is expected to stabilise at 8% per annum. If the last dividend was * 1.50 per share and the investor's required rate of return is 16%, determine the current value of equity share of the company. The P.V. factors at 16% Year P.V. Factor 1 .862 2 .743 3 .641 4 .552