Question 2. a. Critically discuss five (5) benefits of financial management to a small computer firm. b. Never Say Die Ltd has been growing at a phenomenal rate of 20% per year because of its rapid extension and explosive sales. Analysts believe that this growth rate will last for three years and then drop to 5% per annum. If the growth rate then remains at 5% indefinitely, what is the value of Never Say Die Ltd shares? If the dividend paid last year per share was GHC 12 and the cost of capital is 15%.
Question 2. a. Critically discuss five (5) benefits of financial management to a small computer firm. b. Never Say Die Ltd has been growing at a phenomenal rate of 20% per year because of its rapid extension and explosive sales. Analysts believe that this growth rate will last for three years and then drop to 5% per annum. If the growth rate then remains at 5% indefinitely, what is the value of Never Say Die Ltd shares? If the dividend paid last year per share was GHC 12 and the cost of capital is 15%.
Chapter7: Valuation Of Stocks And Corporations
Section: Chapter Questions
Problem 21P
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