The followings are information about three different companies. If an investor is having a required return of 12%, find the intrinsic value of each firm by using the appropriate valuation method. Darius Elliot's Freddie Holding Group Incorporation Last year's RM1.85 RM1.50 RM2 dividend (per share) Information on the The will Expected 5% in: dividend is The dividend dividend next dividend expected to remain the grow by same (no growth) indefinitely Year 1: RM2.13 Year 2: RM2.45 Year 3: RM2.81 Year 4: RM3.24 Year 5: RM3.72 Year 5 and beyond: it will grow by 5%

Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 4AP
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The followings are information about three different companies. If an investor is having a
required return of 12%, find the intrinsic value of each firm by using the appropriate valuation
method.
Darius
Elliot's
Freddie
Holding
Group
Incorporation
Last
year's RM1.85
RM1.50
RM2
dividend
(per share)
Information on the The
will Expected
5% in:
dividend
is The
dividend
dividend
next dividend
expected to remain the grow
by
same (no growth)
indefinitely
Year 1: RM2.13
Year 2: RM2.45
Year 3: RM2.81
Year 4: RM3.24
Year 5: RM3.72
Year 5 and beyond:
it will grow by 5%
Transcribed Image Text:The followings are information about three different companies. If an investor is having a required return of 12%, find the intrinsic value of each firm by using the appropriate valuation method. Darius Elliot's Freddie Holding Group Incorporation Last year's RM1.85 RM1.50 RM2 dividend (per share) Information on the The will Expected 5% in: dividend is The dividend dividend next dividend expected to remain the grow by same (no growth) indefinitely Year 1: RM2.13 Year 2: RM2.45 Year 3: RM2.81 Year 4: RM3.24 Year 5: RM3.72 Year 5 and beyond: it will grow by 5%
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