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please advise on priority Flyfast Limited is Rs 30. Blyfast Limited has a dividend payout ratio of 60% and return on equity is 20%, The

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Flyfast Limited is Rs 30. Blyfast Limited has a dividend payout ratio of 60% and return on equity is 20%, The cost of equity is 12%. What would be the value of the share of Flyfast Limited using the Discount dividend model? b) Explain the limitations of the discount dividend model in finding the intrinsic value of a share? What might be a better method to find the intrinsic value? Why? c) You are interested in buying the shares of Flyfast Limited. Before doing so,you want to do an EIC analysis. What are the factors you would take into account while doing an industry analysis for Flyfast Limited? (Marks:3+2+5) Formulae 23 0 2023109 W1= Proportion of the portfolio invested in Asset 1 W2= Proportion of the portfolio invested in Asset 2 1= Asset 1 standard deviation of returns 2= Asset 2 standard deviation of returns P1,2= Correlation coefficlent between the returns of Asset 1 and Asset 2 w2= Proportion of the portiollo invested in Asset 1 1= Asset 1 standard deviation of returns: 2= Assel 2 standard deviation Expected return of portfolio =w1(E(R1))+w2(E(R2) - w1= proportion of a portfolio invested in a security - Sharpe Ratio =( Portfolio Return-risk free return )/ Portfolio standard deviat - MPS (today) =DI/(kg) - K= cost of equity - g= growth rate - D1=Expected dividend at the end of year 1 - g=b roe - b= retention ratio - Roe-return on equity - Retention ratio =1 - dividend payout ratio

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