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please help solution V (A) Aisha Company stock is currently selling at Tshs 250 per share. The stock is expected to pay Tshs10 as dividend
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V (A) Aisha Company stock is currently selling at Tshs 250 per share. The stock is expected to pay Tshs10 as dividend per share at the end of the next year. It is reliably estimated that the stock will be available for as Tshs 290 at the end of the year. (0) If the forecast about the dividend and price are accurate, is it advisable to buy at the present price, if the investor's required rate of return is 20%? (Support your advice with proper analysis). [7 marks) If the investor requires 15% return when the dividend remains constant, what should be the price at the end of the year? [8 marks] Step by Step Solution
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