Assume that the dividend will grow at a rate of 18 percent


The current dividend on an equity share of Omex Limited is Rs. 5.00 on an earningsper share of Rs. 20.00.(i) Assume that the dividend will grow at a rate of 18 percent for the next 4 years.Thereafter, the growth rate is expected to fall and stabilize at 12 percent. Equityinvestors require a return of 15 percent from Omex's equity share. What is the intrinsic value of Omex's equity share

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Finance Basics: Assume that the dividend will grow at a rate of 18 percent
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