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company paid a dividend of GH250,000 this year. The current return to shareholders of companies...

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Accounting

company paid a dividend of GH250,000 this year. The current return to shareholders of companies in the same industry is 12%, although it is expected that an additional risk premium of 2% will be applicable to the company, being a smaller and unquoted company. Compute the expected valuation of the company, if: a. The current level of dividend is expected to continue into the foreseeable future. b. The dividend is expected to grow at a rate of 4% pa into the foreseeable future.

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