User Account

All Pages

Calculate the intrinsic value of quest limited shares

Assignment Help Accounting Basics
Reference no: EM133025841

Question - An equity analyst analyses the financial statements of Quest Limited. From the analysis, she draws the following conclusions and assumptions:

Earnings of Quest Limited will grow at 10% for 2 years, where after it will stabilise to 5% per annum indefinitely.

The current dividend payout ratio will be maintained by Quest Limited.

The required rate of return on equity is 9.80%.

A recent dividend of R2.50 was declared and paid by Quest Limited to its shareholders.

The number of ordinary shares outstanding in 2019 is 10 000.

Required - Calculate the intrinsic value of Quest Limited shares, using the dividend discount model (DDM).

Reference no: EM133025841

Questions Cloud

Sketch the two sampling distributions : The College Board reported the following mean scores for the three parts of the Scholastic Aptitude Test (SAT) (The World Almanac, 2009):
What is the monthly interest income for this cd : A company purchases (invests in) a 6-month, $20,000 certificate of deposit (CD) on January 1, 2021. What is the monthly interest income for this CD
Create a presentation for a health care leadership : Create a presentation for a health care leadership summit and answer the following:
Learning public speaking skills : Question 1: Why is it important to learn public speaking skills?
Calculate the intrinsic value of quest limited shares : A recent dividend of R2.50 was declared and paid by Quest Limited to its shareholders. Calculate the intrinsic value of Quest Limited shares
What effect did the training have on trainees : What effect did the training have on trainees? What should the trainees be able to do on the job after attending the training program?
What is the symbol grounding problem : What is the symbol grounding problem and why is it an important problem for computer science - how they relate to the symbol grounding problem
What are hr strategies and objectives : What are HR strategies and objectives? How do they contribute to a strong and resilient high-functioning and strategic HR department?
What is the bond yield to maturity : The bond has 11 years to maturity and a 7% coupon rate. The bond makes semiannual coupon payments. What is the bond's yield to maturity

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd