Compute the value of share of a company?
A company paid dividend amounting to Rs. 0.75 each share during the last year. The company is supposed to pay Rs. 2.00 per share throughout the next year. Investors predict a dividend of Rs. 3.00 per share in the year afterward. At this time, the forecast is that the dividends will raise at 10% every year into an infinite future. Compute the value of share. Would you buy or sell the share if the current price is Rs. 50.00? The required rate of return is 15.