You are advising a friend who is considering selling some of her shares in Wyndham Wines plc.

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You are advising a friend who is considering selling some of her shares in Wyndham Wines plc. Their current price is £2.50. They have a β-coefficient of 1.1 and the firm has shown a steady growth in earnings of 6 per cent p.a. in recent years. The current risk-free rate is 5 per cent p.a. while the market risk premium is 10 per cent. The last dividend payment was 20p. What advice would you give and why?

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Financial Markets And Institutions

ISBN: 9780273709190

5th Edition

Authors: Peter Howells, Keith Bain

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