What is the fair estimate of the intrinsic value of econet

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Problem 1: The expected dividend of Econet share is $2,00. The dividend per share of Econet has grown over the past five years at the rate of 5% per year. The growth rate will continue in future. Further the market price of the share, too, is expected to grow at the same rate. What is the fair estimate of the intrinsic value of the Econet share if the required rate of return is 15%?

Problem 2: The expected dividend per share of Edgars is $5,00. The dividend is expected to grow at the rate of 6% per year. If the price per share now is $50,00, what is the expected rate of return?

Reference no: EM132950476

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