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n dollars and cents, what is the maximum you would pay per share for a company that generated profits of $12.774 per share, has 765million

n dollars and cents, what is the maximum you would pay per share for a company that

  • generated profits of $12.774 per share,
  • has 765million shares on issue,
  • had just paid a dividend of $9.695 per share,
  • which according to its accounts has equity capital of $134.5bn,
  • has a standard deviation of 44.63%,
  • where the standard deviation of the market is 18.94%,
  • where the return of the market is 14.65%,
  • where the stocks correlation with the market is 0.84, and
  • the risk-free rate of return is 5.25%? (2 marks)

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