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A shareholder approaches the manager of a firm with the following data for clarification. Year Output Quantity Unit cost Fixed cost price (KES) (KES) (KES)

A shareholder approaches the manager of a firm with the following data for clarification.

Year

Output

Quantity

Unit cost

Fixed cost

price (KES)

(KES)

(KES)

2010

6,500

100

4,000

150,000

2012

7,400

250

4,500

150,000

The investor informs the manager that the firms share price at the Stock Market is KES 700. He requests the manager to compute the investors required rate of return. (5 Marks)

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