Estimate the current value of weka share

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Weka Industries has just paid the 2004 annual dividend of Sh. 1.50 per share. The firm's financial manager expects that these dividends will increase at 10% annual rate over the next 3 years. At the end of the3 years, (end of 2007) the growth rate will decline to 5% for the foreseeable future. The firm's required rate of return is15%. Estimate the current value of Weka share i.e. the value at end of 2004 (P0 = P2004).

Reference no: EM131114162

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