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AAFM Exam GLO_CWM_LVL_1 Topic 2 Question 36 Discussion
Actual exam question for
AAFM's
GLO_CWM_LVL_1 exam
Question #: 36
Topic #: 2
[All GLO_CWM_LVL_1 Questions]
Topic #: 2
The current dividend on an equity share of MAGADH Limited is Rs.8.00 on earnings per share of Rs. 30.00. Assume that the growth rate of 20 percent will decline linearly over a five year period and then stabilize at 12 percent. What is the intrinsic value of MAGADH 's share if the investors' required rate of return is 15 percent?
Suggested Answer:
A
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