AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 152 Topic 16 Discussion

AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 152 Topic 16 Discussion

GLO_CWM_LVL_1 Exam Topic 16 Question 152 Discussion:
Question #: 152
Topic #: 16

The current dividend on an equity share of MAGADH Limited is Rs.8.00 on earnings per share of Rs. 30.00. Assume that the growth rate of 20 percent will decline linearly over a five year period and then stabilize at 12 percent. What is the intrinsic value of MAGADH ’s share if the investors’ required rate of return is 15 percent?


A.

Rs. 352/-


B.

Rs. 383/-


C.

Rs. 416/-


D.

Rs. 469/-


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