Question 1: (25) A. Complete the following chart. A B D E F Current Year Dividend - % Current Year Div Amount - Rs Par Value of the Share - Rs Constant Growth in Div. % Required Rate of Return % Market Value of the Share - Rs Eagle Ltd 12.50% ? 10 3.0% 8% ? Falcon Ltd 8% 1.60 ? 5% 12.5% 2 Hawk Peregrine Ltd Ltd 15% ? 2 4.20 10 20 2.5% 5% 2 15% 6.00 Harmer Lui 2 7.50 10 10% 22.5% B. What is a financial asset? Can title deed to a real estate property be called a financial asset? Why? Question 2: (25) Complete the following char for all the companies from left to right. Page 1 of 2 BLA LE A Risk free rate - % 7.5% 4.8% 6.7% 7.9% 2 B Market Premium - % 4.0% 4.0% 3.0% ? 8.0% ? ? ? 12.9% 21.28% Industry Average: EYR % Company Beta - D 1.25 1.3 ? 0.92 ? ? 10% ? E ? 20.0% Required Rate of Return % 3.00 7 7 2.40 F ? Earnings Per Share - Rs 8 ? 10 ? ? G Price Earnings Multiple times ? 40 12 ? 22.50 H Market Price of the Share - Rs Question 1: (25) A. Complete the following chart. A B D E F Current Year Dividend - % Current Year Div Amount - Rs Par Value of the Share - Rs Constant Growth in Div. % Required Rate of Return % Market Value of the Share - Rs Eagle Ltd 12.50% ? 10 3.0% 8% ? Falcon Ltd 8% 1.60 ? 5% 12.5% 2 Hawk Peregrine Ltd Ltd 15% ? 2 4.20 10 20 2.5% 5% 2 15% 6.00 Harmer Lui 2 7.50 10 10% 22.5% B. What is a financial asset? Can title deed to a real estate property be called a financial asset? Why? Question 2: (25) Complete the following char for all the companies from left to right. Page 1 of 2 BLA LE A Risk free rate - % 7.5% 4.8% 6.7% 7.9% 2 B Market Premium - % 4.0% 4.0% 3.0% ? 8.0% ? ? ? 12.9% 21.28% Industry Average: EYR % Company Beta - D 1.25 1.3 ? 0.92 ? ? 10% ? E ? 20.0% Required Rate of Return % 3.00 7 7 2.40 F ? Earnings Per Share - Rs 8 ? 10 ? ? G Price Earnings Multiple times ? 40 12 ? 22.50 H Market Price of the Share - Rs