What is the 'intrinsic value of a stock and what does it tell us? The most recent dividend paid by Dangote cement Zambia
Posted: Sat Feb 26, 2022 9:07 am
company has adopted a new stable dividend growth policy approved by the Board. According to the policy, dividends will grow at a rate of 6 per cent per annum for the foreseeable future. The discount rate is 12 %. Showing your work clearly: b. Calculate the expected dividends per share at the end of each of the 4th and 5th years. c. Compute the intrinsic value of the stocks of Dangote cement Zambia? d. Explain what the intrinsic value will be if the rate of growth of dividends is larger than the discount rate? e. Compute the intrinsic value of the stocks if dividends were to remain constant?
What is the 'intrinsic value of a stock and what does it tell us? The most recent dividend paid by Dangote cement Zambia shares is K4 per share. The