Sncura Enterprises offering Shares in the Karachi stock exchange since they required money for consuming the association so Share HP has an expected growth rate of 10% for the initial 5 years and 12% from that point. Each share of stock just got a yearly 220 dividend per share for every year. The appropriate discount rate is 29%. What will be the estimation of the stock under this situation?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 2P
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Question No 09:                                                                          

Sncura Enterprises offering Shares in the Karachi stock exchange since they required money for consuming the association so Share HP has an expected growth rate of 10% for the initial 5 years and 12% from that point. Each share of stock just got a yearly 220 dividend per share for every year. The appropriate discount rate is 29%. What will be the estimation of the stock under this situation?

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