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Time left 1:38 Scanned 20... The current dividend on an equity share of Roscam Limited...

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Time left 1:38 Scanned 20... The current dividend on an equity share of Roscam Limited is Rs.4.00. a) What would be the intrinsic value of the share assuming a constant growth rate of 10% in the future and 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 stabilize 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 share? (3+7=10 Marks) 1 B

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