the present profit on a value offer of Magnum Limited is Rs.4.00.
(i) Assume that Magnum's profit will develop at the rate of 18 percent for each year for the following 5 years. From there on, the development rate is relied upon to fall and balance out at 10 percent. Value financial specialists oblige an arrival of 15 percent from Magnum's value offers. What is the characteristic estimation of Magnum's value offer?
(ii) Assume now that the development rate of 18 percent will decay directly over a time of 4years and after that settle at 10 percent . What is the characteristic worth per offer of Magnum, if financial specialists oblige an arrival of 15 percent?