Calculate the present value of share if the expected dividend is Rs. 1; selling price of shares at the end of the period is Rs. 27.50 and the required rate of return is 14%. * Mark the correct option 2 points Rs. 27.50 Rs. 27 Rs. 28 Rs. 25
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The formula for the present value of a stock with constant growth is the estimated dividends to be paid divided by the difference between the required rate of return and the growth rate.
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