Calculate value of growth opportunities


Response to the following problem:

Ama Tours and Travels Limited has current earnings per share of Rs 8.60, which has been growing at 12 per cent. The growth rate is expected to continue in future. Rama has a policy of paying 40 per cent of its earnings as dividend. If its capitalisation rate is 18 per cent, what is the value of the share? Also calculate value of growth opportunities.

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Financial Accounting: Calculate value of growth opportunities
Reference No:- TGS02111468

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