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A company pays a dividend of Rs.2.00 per share with growth rate of 7%. The risk free rate is 9% and the market rate of
A company pays a dividend of Rs.2.00 per share with growth rate of 7%. The risk free rate is 9% and the market rate of return is 13%. The company has a beta factor of 1.50. However, due to the decision of the finance manager the beta factor changes to 1.75. find the present value as well as the likely value of share after the decision.
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