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Q2 a. ZF Ltd. has a security B 1.4, expected market return is 16%, risk free rate is 9%, Company's anticipated dividend for the
Q2 a. ZF Ltd. has a security B 1.4, expected market return is 16%, risk free rate is 9%, Company's anticipated dividend for the year is Rs.18, Current market price is Rs.450, and price is expected to reach at Rs.520 by the end of year. Calculate expected returns & estimated returns of security and explain valuation of stock. b. Explain Interest Rate Risk & Purchasing Power Risk
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a To calculate the expected returns of the security we can use the capital asset pricing model CAPM Expected return Riskfree rate Beta Expected market ...
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
