Question
QUESTION 4 b) Mongo Ltd. currently pays a dividend of $4 per share. The dividend is expected to grow at 15% per annum for the
QUESTION 4
b) Mongo Ltd. currently pays a dividend of $4 per share. The dividend is expected to grow at 15% per annum for the first 3 years, then at 10% per annum for the next 3 years, after which the dividend will grow at 5% per annum to perpetuity. The required rate of return for the ordinary share is 18%.
Required:
The intrinsic value of the ordinary share
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The World Economy Geography, Business, Development
Authors: Frederick P. Stutz, Barney Warf
6th edition
321722508, 321722507, 978-0321722508
