28 July 2010
prashant ltd. is intending to acquire substantial shares in gvk ltd. to acquire control in the company.the beta factor of gvk ltd. is 1.60 and its current market price is rs.190. the company is consistently paying an annual dividend of rs. 46. the risk free market rate of interest is 12% and the rate of return expected on such securities in the market is 18% .you are required to value the shares of gvk ltd.?
Are you sure your question is complete with all necesssary info. If we want to value the shares we need to determine cashflows of future which should dividend or expected share price in future.
Not sure whether I understood your query correctly.