Question
The current dividend on an equity share of pioneer technology is Rs3.00. Pioneer is expected to enjoy an above-normal growth rate of 40% for 5years.Thereafter,
The current dividend on an equity share of pioneer technology is Rs3.00. Pioneer is expected to
enjoy an above-normal growth rate of 40% for 5years.Thereafter, the growth rate will fall and
stabilize at 12%. Equity investors require a return of 15% from pioneer's stock. What is the intrinsic
value of the equity share of pioneer???----
a) 400 b) 327.50 c) 326.8 d) 380
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
