solved:An investor is trying to determine the intrinsic value of P

  

An investor is trying to determine the intrinsic value of PT ABC’sshares. According to company data, last year the company paid a dividend of Rp1,000. Because the company is still in the growth stage, it is estimated that in the next three years the growth rate will reach 50% per year and after that constant growth of 5% per year. At this time, it is known that the risk-free interest rate is 7.5% and the investor requires a market risk premium for shares of 7.5%. Based on the data, what is the fair value of the shares?AccountingBusinessFinancial Accounting FINANCE 101