Question
What is the current value of the share of company, if
the share is to be sold at Rs. 600 after two years and the expected dividend is Rs.10 and Rs.20 respectively at the end of year 1 and year 2. The expected return from the share is 20%.Solution
Current value of the share = 10/(1.2) + (20+600) / (1.2)2 = 438.88 or ~ 439
More Finance Questions
- Identify x such that x% of 540 plus {1080 ÷ x of 9} × 6 gives 162
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...What value should come in the place of (?) in the following questions.
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