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Beta coefficient for P Ltd is 1.70. Expected return from market is 7.90 per cent; whereas, govt bond yields at 5.25 per cent. Tax rate
Beta coefficient for P Ltd is 1.70. Expected return from market is 7.90 per cent; whereas, govt bond yields at 5.25 per cent. Tax rate is 30 per cent. If the share of P Ltd realises 9.80 per cent return, find the correct statement about P Ltd share from the following: Group of answer choices
Expected return is 9.84 per cent and under-priced
Expected return is 13.43 per cent and under-priced
Expected return is 9.84 per cent and overpriced
Expected return is 13.43 per cent and overpriced
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