AAFM GLO_CWM_LVL_1 Exam - Topic 2 Question 36 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 36
Topic #: 2

The current dividend on an equity share of MAGADH Limited is Rs.8.00 on earnings per share of Rs. 30.00. Assume that the growth rate of 20 percent will decline linearly over a five year period and then stabilize at 12 percent. What is the intrinsic value of MAGADH 's share if the investors' required rate of return is 15 percent?

ARs. 352/-

BRs. 383/-

CRs. 416/-

DRs. 469/-

Show Suggested Answer

Suggested Answer: A

by Moon at May 07, 2022, 11:56 PM

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Nieves

10 months ago

I disagree, I feel like Rs. 352/- is too low for this stock.

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Devorah

11 months ago

Wait, how can the growth rate decline and still stabilize at 12%? Sounds off.

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Kyoko

11 months ago

Definitely going with Rs. 416/- on this one!

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Sharen

11 months ago

I think the intrinsic value is closer to Rs. 383/-.

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Jacob

11 months ago

The current dividend is Rs. 8.00 on EPS of Rs. 30.00.

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Annett

11 months ago

I think the answer is C. The question is asking about the entry source event type for a journey, and the Segment Join to Journey Builder feature requires an API as the entry source.

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Carlene

12 months ago

Growth declines linearly from 20% to 12% over five yearsâ€”need to trace that path.

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