1. Plus engg ltd is expected to grow at the rate of 6% p.a.

The dividend expected on equity share a year hence is RS. 2.00. What price will you pay on it if your required rate of return for this share is 14%? 2. The equity stock of A ltd is currently selling for Rs. 30/share. The dividend expected next year is Rs. 2.00. The investors required rate of return on this stock is 15%.if the constant growth made applies to A ltd. What is the expected growth rate? 3. The current dividend on an equity share of INFO Ltd is Rs. 2.00. It is expected to enjoy an above normal growth rate of 20% for a period of 6 years. Thereafter the growth rate will fall & stabilise at 10%. Equity investors require a return of 15%. What is the intrinsic value of INFO ltds equity share? 4. V Ltd earning & dividend have been growing @ a rate of 18% p.a. This growth rate is expected to continue for 4 years. After that the growth rate will fall to 12% for the next 4 years. Thereafter, the growth rate is expected to be 6% forever. If the last dividend per share was Rs. 2.00 & investors requires rate of return is 15%. What is the intrinsic value per share? 5. The current dividend on an equity share of Pioneer Tech is Rs. 3.00. Pioneer is expected to enjoy an above normal growth rate of 40% for 5 years. Thereafter the growth rate will fall & stabilise at 12%. Equity share investors require a return of 18% from pioneers stock. What is the intrinsic value of the equity share of pioneer? 6. The current dividend on an equity share of T Comp Ltd is Rs. 5.00. The present growth rate is 50%. However this will decline linearly over a period of 8 years & then stabilise at 10%. What is the intrinsic value per share of T Comp Ltd., if required rate of return is 18%?