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A listed company in stock exchange is currently selling at Rs. 64 and just paid the dividend of Rs. 6 which is expected to grow
A listed company in stock exchange is currently selling at Rs. 64 and just paid the dividend of Rs. 6 which is expected to grow at 5%. the aggregate market return is expected to be 12% and treasury securities are yielding 6%. It has also Rs. 100 par 6.3%preferred stock outstanding that is currently selling at Rs. 70. The analysis shows the beta of the company is 1.4. The company has also availed a long term loan from the banks and paying 10% interest rate. The capital structure of the company consists of 50% equity, 20% preferred stock and 30% debt. |
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