The company is currently focusing to expand its business units therefore it needs extra funds to purchase new assets. The company has already issued both preferred and common stock in the market. company is able to sell 18% preferred stock issue at Rs.100 par value and the required rate of return on this investment is 15%.

However the demand of companys Common stock is increasing day by day in the market. The Companys financial highlights show that it has announced Rs. 6 dividend on common stock this year. According to investor expectations it would grow at the rate of 5% for next 3 years, then at the rate of 6% for next 3 years and then at the rate of 7% thereafter. If required rate of return of investor is 14%.

Calculate the intrinsic value of share.