Calculate the expected price of the stock at the end

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Question - PT Elyksion Communication is experiencing rapid growth. The company expects 15% growth in earnings and dividends over the next two years, 13% in the third year, and constant growth of 6% for the following years. It is known that PT Elyksion Communication had a dividend of Rp1.15 last year, and the required rate of return on its shares was 12%.

Required -

a. Calculates the current stock value.

b. Calculate the expected price of the stock at the end of the year at the end of Year 1 and Year 2.

c. Calculating dividend yield and capital gains yield for Years 1, 2, and 3.

Reference no: EM133081500

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