What is the value of the shares of x ltd

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X Ltd. last dividend was Do = RO.50, and the company expects to experience no growth for the next two years. However, X Ltd. will grow at an annual rate of 5% in the third and fourth years, and, beginning with the fifth year, it should attain a 10% growth rate that it should sustain after that. The short-term Treasury bills are paying 5% while an average share is earning its owner 8%. Nedbank Group Led. is a very volatile share, responding to the economic climate with a beta of 2. The share of X Ltd. is currently trading at a price of R20. 85

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What is the value of the shares of X Ltd. today?

Reference no: EM133060182

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