You have been asked by your employers to demonstrate your knowledge in business valuation process, by analyzing Best Capital Micro Finance (BCMF). The company paid a dividend of GHC250,000 this year. The current to shareholders of companies in the same industry as BMS is 12 percent, although it is expected that an additional risk premium of 2 percent will be applicable to BMS, being a smaller and unquoted company.

Required: Compute the expected valuation of BCMF, if:

i. The current level of dividend is expected to continue into the foreseeable future

ii. The dividend is expected to grow at a rate of 4 percent into the foreseeable future

iii. The dividend is expected to grow at 10 percent for the next two years, 5 percent in the following two years and 2 percent afterwards