Academic MBA Question:
Rajshree Limited’s
equity shares trade in the market at Rs. 40 per share. Dividend paid in the
current year is Rs.8 per share. You expect the dividend to grow at a constant
rate of 4% year on year.
Is the stock underpriced or overpriced? State the appropriate reason.
Assume 16% cost of equity. (10 Marks)
Academic Assignment Answer:
