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Business, 09.08.2021 14:00 azaz1819

Gamzan Corporation is expected to pay dividend of Rs. 20 this year. This dividend is expected to grow at 11% rate for the next 4 years, after that dividend is expected to grow at a rate of 14% for the next 3 years and after that dividend is expected to grow at a constant rate of 6% for ever. What should be the market price per share of this stock, if the expected return on this stock is 18%? If the market price per share is Rs. 122, will you purchase this share? Give reasons to justify your answer.

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Gamzan Corporation is expected to pay dividend of Rs. 20 this year. This dividend is expected to gro...
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