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Squid Ltd. is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 15% during the next 4
Squid Ltd. is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 15% during the next 4 years. After that, it is expected to grow at a rate of 6% forever. The company paid a dividend of Tk. 1.15 per share last year. If the required rate of return is 12%, what is the value of the share today? If the current market price of the share is Tk. 30, should you buy the share?
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