Question
1 ) Calculate the net present value of a project which requires an initial investment of $225,000 and it is expected to generate a cash
1 ) Calculate the net present value of a project which requires an initial investment of $225,000 and it is expected to generate a cash inflow of $45,000 each month for 12 months. Assume that the salvage value of the project is zero. The target rate of return is 12% per annum?.
281478
2,87,754
3,87,754
218,754
2)
You are given the following information:
Name of the company | Current Market Price (Rs.) | Current Dividend per share (Rs.) | Growth rate in dividend per share (%) | Beta | Risk-free rate (%) | Market Return (%) |
M Limited | 32 | 1.06 | 15 | 1.10 | 6.25% | 11.75% |
Determine the cost of equity using:
a) Dividend discount model
b) CAPM
Choose the response that correctly depicts answers to both the questions above.
Group of answer choices
18.8%; 19.18%
18.8%; 12.3%
3.81%; 12.3%
18.31%, 19.18%
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