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a) Bolton invested $100,000 in Amway shares. Other information as below: Company beta - 1.5 Government Treasury bill 5% He seeks your advice on the
a) Bolton invested $100,000 in Amway shares. Other information as below: Company beta - 1.5 Government Treasury bill 5% He seeks your advice on the value of share if the NYSE return is 30% during the year. b) Ramli Bhd is expected to pay a RM0.50 dividend next year. The dividend is expected to grow at 30% annual rate for Year 2 and 3, at 20% annually for Year 4 and 5, and at 5% annual rate for Year 6 Thereafter. If the required rate of return is 10%, what is the value per share?
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