13. Sohar Aluminium has the following dividend history: Year Dividend per Share Recently paid 25 bz Last year 19 bz Two years ago 18 bz Three years ago 16 bz Four years ago 14 bz Five years ago 11 bz The rate of return required on a share of this risk class is 15 per cent. Assuming that this dividend growth rate is unsustainable and Sohar will halve its historic rate in the future, what is the value of one share? (1.5+1.5 = 3 marks) 14. Mr. Zahid has inherited the following portfolio: (2+1 = 3 marks) Share Share price No. of shares Beta ABC OMR 1.40 20000 0.80 DEF OMR 2.20 10000 1.20 GHI OMR 1.90 20000 1.10 a). What is the beta on this portfolio? (2 marks) b). If the risk-free rate of return is 7.5 per cent and the risk premium on shares over Treasury bills has been 4 per cent what is the expected return on this portfolio over the next year? ( 1 mark)