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Q 5 . ) The stock price last year was Rs 6 0 and this year the stock price is 6 3 . The price

Q5.) The stock price last year was Rs 60 and this year the stock price is 63. The price of 63 corresponds to a P/E ratio of 7.5:1 and a dividend cover of 2.1. An analyst employs a constant growth model to value the stock. What are the values of the growth rate and discount rate estimated by him? If the cost of debt is 10% per annum and the tae rate is 25%, what is the WACC assuming a debt-equity ratio of 3:27

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