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What is the intrinsic value of roscam equity shares

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Reference no: EM132648528

The current dividend on an equity shares of Roscam Limited is Rs. 4.00.

a. What would be the intrinsic value of the shares assuming a contant growth rate of 10% in the future amd a required rate of return of 15% from investors?

b. Assume that Roscam's dividend is projected to grow at the rate of 18 percent per year for the next 5 years and then the growth rate is expected to fall and stabalize at 10 percent. Equity investors require a return of 15 percent from Roscam's equity shares. What is the intrinsic value of Roscam's equity shares?

Reference no: EM132648528

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