This is a subjective question, hence you have to write your answer in the Text-Field given below. A stock of X Co. just gave a dividend of Rs.6 per share. It is expected that dividends will grow by 8.00% over the next 3 years (0-1, 1-2, 2-3 years). Beyond 3 years, X Co. will be retaining 50% of the earnings and investing in a project which is expected to return a 10% pa. (EAR) return on equity (ROE) from the investment. This retention ratio of 50% is going to continue forever thereafter, and the ROE is also expected to continue at 10% pa. EAR forever thereafter. Hence, growth rate in dividends beyond three years till perpetuity will be 5% pa. (EAR). The relevant cost of equity capital is estimated at 10.00 pa compounded annually. What is the intrinsic value of the stock of X Co.? If the market price per share of the stock is Rs. 100, what should the investment recommendation be related to stock X (buy or sell)? 5M