The present profit on a value offer of omega limited is, Ask an Expert

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the present profit on a value offer of Omega Limited is Rs.8.00 on an income for every offer of Rs. 30.00.

(i) Assume that the profit per offer will develop at the rate of 20 percent for every year for the following 5 years. From that point, the development rate is required to fall and settle at 12 percent.

Financial specialists oblige an arrival of 15 percent from Omega's value offers. What is the inherent estimation of Omega's value offer?

(ii) Assume that the development rate of 20 percent will decrease straightly over a five year period and after that balance out at 12 percent. What is the inborn estimation of Omega's offer if the financial specialists' obliged rate of return is 15 percent?

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