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Qua Ray Co. Ltd is currently paying fiso per share as dividend. The shares are currently being traded at the stock exchange at $6,000 per
Qua Ray Co. Ltd is currently paying fiso per share as dividend. The shares are currently being traded at the stock exchange at $6,000 per Share If the dividend are expected to grow at the rate of 8% per year, determine the discount rate or required rate of return. b) Asempa Ltd. pays $120 per Shore as dividend Currently. Dividend are expected to grow at 5% rate per annum into the foreseable future. If the required rate of return is 12% determine the value of the shamapen share per price of the share. Q2 45% of Richnee's is investment isin ABC shares and the remainder in QRS shares. Richnee expects a return of 21% in ABC and 18% on ORS. The Standard deviation on returns on ABC is 19% and QRS 21%. If the correlation Co-efficient between ABC and QRS is 0.082, Calculate : a) the expected return on the portfolio b) the standard deviation for the portfolio Crisk of the portfolio
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