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DVI Company has a long-term policy of retaining 45% of its profit for reinvestment purposes. The bet and its ROA to be 20%. The market

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DVI Company has a long-term policy of retaining 45% of its profit for reinvestment purposes. The bet and its ROA to be 20%. The market premium and risk-free rate are 9% and 12% respectively. The current dividend issued by the company is Tshs 50 and the company's shares are selling at Tshs 300 a of the company is 1.5. It expects its debt-to-equity ratio to remain constant at 40% DECISION: Would you sell or buy the shares of DVL Company? Why or why not? (Support your decision with informed financial analysis). 130 marks

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