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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:

Single Question and Answer