Mavoka limited is growing earnings at an annual rate of 8%. lt currently pays out dividends equal to 15% of earnings. Mavoka's ROE is 15%. Calculate its SGR (2mks)

(b) Expected Earnings per share (EPS) of mankind enterprise Ltd is Kes 7 and expected dividend per share (DPS) is kes 3.5. The Companys ROE is expected to be maintained at 20%. Investors required return for mankind enteprises Ltd is 15%. What should be the value ( or expected price) of its share? If current market price is kes74, should it be purchased? (4mks)

(c) Shares of Kimjano company are selling for kes30. The mean analyst earnings per share forecast for next year is kes 4.00, and the long-run growth rate is 5%. Kimjano has a dividend payout ratio of 60%. The required return is 14%. Calculate the fundamental value of Kimjano using the Gordon growth model and determine whether Kimjano shares are over-or undervalued using the method of forecasted fundamentals. (4mks)

(d) Explain briefly on the following bond portfolio management practices.

(i) Passive portfolio strategy (2mks)

(ii) Active management strategies (2mks)

(iii) Core pus management strategies (2mks)

(iv) Matched funding techniques (2mks)

(v) Contingent procedures (2mks)

(e) Consider a zero-coupon bond with a kes1000 face value and 10 years left until maturity. If the YTM of this bond is 10.4%,calculate the price of the bond (5mks).