() Mr. X intends to buy a share and will hold it for one year....
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() Mr. X intends to buy a share and will hold it for one year. He expects the share to pay a dividend of Tk. 20 next year, and would sell the share at an expected price of Tk. 230 at the end of the year. If the investor's opportunity cost of capital is 12%, how much should he pay for the share today? e) Mr. Y is going to buy some 10 shares of Keraniganj Ltd for Tk. 150 cach. The face value of ench share is T'k. 100. It is expected that the company will pay a dividend of Tk. 12 next year, which will grow @8% for the next 5 years, and @5% afterwards forever. What is the intrinsic value of the shares if the discount rate is 12%
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