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last number is 9 Question No. 4: Zincon Industries has a beta of 1.45. The risk-free rate is ------* percent and the expected return on

image text in transcribed last number is 9

Question No. 4: Zincon Industries has a beta of 1.45. The risk-free rate is ------* percent and the expected return on the market portfolio is 14 percent. The company currently pays a dividend of $2 a share, and investors expect it to experience a growth in dividends of 10 percent per annum for many years to come. (4 Marks) a. What is the stock's required rate of return according to the CAPM? b. What is the stock's present market price per share, assuming this required return? e. What would happen to the required return and to market price per share if the beta were 0.80? (Assume that all else stays the same.) Note: * The risk-free rate is equal to last one digit of your roll number Pr 2890

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