Question: Q # 01: A) Omnia Foods Currently Pay A Dividend Of Rs 2. The Growth Rate Which Is Currently 20 % Is Expected To Decline Linearly Over The Next 10 Years To A Stable Rate Of 5 %. The Required Rate Is 12 %. Calculate The Current Value Of Omnia Foods Company. B) You Have Recently Joined UOL Financial Brokerage Firm As An Analyst. Your Manager Is Interested …

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Q # 01: a) Omnia foods currently pay a dividend of Rs 2. The growth rate which is currently 20 % is expected to decline linearly over the next 10 years to a stable rate of 5 %. The required rate is 12 %. Calculate the current value of Omnia Foods Company. b) You have recently joined UOL Financial Brokerage Firm as an analyst. Your manager is interested in understanding Fama French Three Factor Model. He knows the following formula of Fama French Three Factor Model. Kindly write a brief note which explains the model for better understanding of your manager. He also wants to know the applicability of model for valuation. RRR = Rf + beta, x (Rm – Rf) + beta, X SMB + betaz x HML