What is the value of the share

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An investor is looking for a four-year investment. The share of Skylark Company is selling for Rupees 75. They have plans to pay a dividend of Rupees 7.50 per share each at the end of first and second years and Rupees 9 and 15 respectively at the end of third and fourth years. If the investor's required rate of return is 12 percent and the share's price at the end of fourth year is Rupees 70. What is the value of the share? Would it be a desirable investment? Give reasons for your answer.

Reference no: EM132497854

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