Question

3. An investor is looking for a four-year investment. The share of Skylark Company is
selling for Rs. 75. They have plans to pay a dividend of Rs. 7.50 per share each at the end
of first and second years and Rs. 9 and 15 respectively at the end of third and fourth
years. If the investor's capitalization rate is 12 per cent and the share's price at the end of
fourth year is Rs. 70. What is the value of the share? Would it be desirable investment?​

Answer 1

Answer:

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