Home Company paid an annual dividend of RM0.90 per share this year. The company expects that the dividend will grow an a

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answerhappygod
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Home Company paid an annual dividend of RM0.90 per share this year. The company expects that the dividend will grow an a

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Home Company paid an annual dividend of RM0.90 per share this year. The company expects that the dividend will grow an annual rate of 15 percent for the next five years and then drop to a gradual growth rate of 7 percent indefinitely. The required rate of return is 10 percent and the share is currently trading at RM48.i) Calculate the intrinsic value of the share today. (please show with formula)ii) Justify whether you would buy the share.Please answer both questions, answer with your own words. Not in point form but in the paragraph.Need support with example
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