What is the intrinsic price per share or worth of one share


A company's earnings and dividends are growing at the rate of 18% pa. The growth rate is expected to continue for 4 years. After 4 years, from year 5 onwards, the growth rate will be 6% forever. If the dividend per share last year was Rs. 2 and the investors required rate of return is 10% pa, what is the intrinsic price per share or the worth of one share.

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Accounting Basics: What is the intrinsic price per share or worth of one share
Reference No:- TGS070022

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