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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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