What shall be the present value of the share with a discount

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Problem 1: The earnings of a company have been growing at 15 percent over the past several years and are expected to increase at this rate for the next 7 years and thereafter, at 9 percent in perpetuity. It is currently earning Rs 4 per share and paying Rs 2 per share as dividend. What shall be the present value of the share with a discount rate of 12 percent for the first seven years and 10 percent thereafter.

Reference no: EM133005909

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