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Hilt share is quoted at Rs 60. Nitin expects the company to pay a dividend of Rs 3 per share, one year from now. The

Hilt share is quoted at Rs 60. Nitin expects the company to pay a dividend of Rs 3 per share, one year from now. The expected price one year from now is Rs 78,50. 


(a) What is the expected dividend yield, rate of price change and holding period yield (HPY? 


(b) If the beta of the share is 1.5, the risk-free rate is 6 per cent and the market risk premium is 10 percent, what is the required rate of return? 


(c) What is the intrinsic value of the share? How does it compare with the current market price.


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