Burklin Inc. has earnings of 21 million and is projected to grow at a constant rate of 5% forever.

Currently all earnings are paid out as dividends.The company plans to la

years from now that would be completely internally funded and would require 30% of earnings that year.Project would start generating earnings after 1 year and the e
project are expected to be 6.7 million in any year.Companyhas 7.5 million shares outstanding.Estimate the value of the stock,discount rate is 10%

r 10%
g 5%

D0 21
D1 22.05
D2 16.20675 23.1525
D3 24.31013

NPV
 vidends.The company plans to launch a new project 2
ng earnings after 1 year and the earnings from the
rate is 10%
Storico has just paid a dividend of 3.40 per share.The company will increase its dividend by 20% next yearand will then reduce its growth by five percentage points per
r 13%

D0 3.4
D1 4.08 20%
D2 4.692 15%
D3 5.1612 10%
D4 5.41926 5%

₹ 14.19

D5 5.690223
P5 71.12779

Pv ₹ 43.62

Share price ₹ 57.81

owth by five percentage points per year until it reaches the industry average of 5%,after which the company will keep a constant growth rate forever.If the required rate of return
rever.If the required rate of return is 13%what is the current share price?