Equity Investments

Maristella Skincare has always sold its products to wholesalers, which resell them to pharmacies. It now plans to sell directly to consumers through its own online store, at the same retail prices that pharmacies charge. Which effect on Maristella's margins should an analyst expect from this change in its business model?

Mkhize Water Utilities has just paid an annual dividend of 2.60 per share. Dividends are expected to grow at a constant 3.25% a year indefinitely, and investors require a return of 8.50% on the shares. Using the Gordon growth model, the intrinsic value per share is closest to:

Sepilok Data Systems has just paid an annual dividend of 1.35 per share. An analyst expects dividends to grow at 14.0% a year for the next three years and at 3.5% a year indefinitely thereafter. The required return on the shares is 9.75%. Using a two-stage dividend discount model, the intrinsic value of a Sepilok share today is closest to: