Question 12 (Total: 6 marks) ADNOC has a beta of 1.05. The risk-free rate of return is 2 percent and the expected return on the market portfolio is 17 percent. The company currently pays a dividend of AED1.00, and investors expect a future growth in dividends of 10 percent per annum indefinitely. (a) Calculate the share's required rate of return. (2 marks) (b) ADNOC's shares assuming the required return of return in part (a). (4 marks)