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Mabati Ltd is expected to pay a DPS of Sh.6 in one year's time. The dividend payout ratio is 60% and the Return on

Mabati Ltd is expected to pay a DPS of Sh.6 in one year's time. The dividend payout ratio is 60% and the Return on Equity is 15%. Using relevant calculations, determine whether the share is overvalued if the MPS is Sh.40. (6 marks)

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