Q1. Mr Phuduhudu has been monitoring MMN Ltd for the past year for possible investment opportunities in the company. The company had an EPS of $5 as ta the end of 2022., a dividend payout ratio of 30% and a returned earnings of 20%. If the discount rate is 20%, calculate;

i) Dividends at year end (2 marks)

ii) Growth rate in dividends (3 marks)

iii) The price of share of MMN Ltd ( 3 marks)

b) It is often argued that a company's beta is stable and can be estimated by looking at the whole industry as a proxy. Studies have however shown that betas can be influenced by company- specific factors. Discuss in details the 3 determinants of beta that will influence a firm's beta to change over time. (12marks)