Samrudhi Ltd., paid 2.50 as dividend per share on its equity shares for year ended 31st March, 2010. Dividends are expected to grow at 10 per cent annum for an indefinite future. The current market price of the share is 80.
- What is the expected rate of return?
- If the required rate of return is 12%, what would be the value of stock?
- Is it worth investing in the share?
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