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Linda Limited has a ROE of 12% and the share is currently selling for R67.50. Its dividend payout ratio is 60%. The firm's earnings and

Linda Limited has a ROE of 12% and the share is currently selling for R67.50. Its dividend payout ratio is 60%. The firm's earnings and dividends grow at a rate of 4.8%. Additionally, its profit margin on sales is 25%.

Supplementary and market related information for Linda Limited is provided below:

Market and company specific Linda's information

Riskfree rate 3.5% Market risk premium 5% Size premium 4% Value premium 3% Liquidity premium 1%

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