QUESTION 9

b) Moran Ltd. earnings and dividend per share have been growing at a rate of 18% per annum. This rate is expected to be constant for four years, after which it will fall to 12% for another four years. Thereafter, the growth rate will be 6% in perpetuity. The last dividend per share to be paid was $.2 and the investors' required rate of return is 15%.

Required:

The intrinsic value per share.