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Calculate the intrinsic value of the stock

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Question - Low Tech Chip Company is expected to have EPS in the coming year of Rs. 2.50. The expected ROE is 14%, and this is expected to continue into the future. The firm has a dividend payout ratio of 40%, which the firm expects to maintain in the future. An appropriate required return on the stock is 11%. Calculate the intrinsic value of the stock.

Reference no: EM132547811

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