Question
i dont understand the question....please help.Assume the return to the market portfolio to be 9%, the risk-free rate is 0.25% and the Fortescue share beta
i dont understand the question....please help.Assume the return to the market portfolio to be 9%, the risk-free rate is 0.25% and the Fortescue share beta is 1.12. Assume also that Fortescue will pay a lump sum dividend in the next period (2018) equal to the total Fortescue dividends per share paid in 2017. Assume that dividends will grow at the same rate as the Fortescue 3-year operating revenue grew in 2017 for the foreseeable future. Consider the below sources and answer the question: ? Go to Morning star>FMG> select the "Dividend History" tab to find most recent dividends ? Go to Morning star>FMG> select the "Financial Data" tab > select the "Growth Rates" tab to find the operating revenue growth rate? Go to https://au.finance.yahoo.com/quote/FMG.AX/ to see the most recent Fortescue share priceQuestion: What is the current price of Fortescue shares based on the above information? Would you purchase the share today? Why or why not?
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