Compute the value of the share

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a. XYZ ltd, a company based in Malindi paid a dividend of sh 3 per share as of last financial period and the investors required rate of return is 12%.

Required

i. Compute the value of the share if no growth in dividend is expected.

ii. if the above company expects a constant growth rate is dividend of 2% fill infinity determine the theoretical value of the share.

iii. If the some company expects a growth rate of 5% for the first two years and 3% for he next three years and then changing to 5% thereafter till infinity, compute the value of the share.

Reference no: EM133003949

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