Question 2 a 870 a leted company on the Botswana Stock Exchange has a beta of 1.4 . Short temp governmen securities yield 5% and the market portiolio offers on expected retum of 148 Calculne thie required return on BTO's stock (2 marks) b. Sechaba thd atso tited on the Botswana Stock Exchange currently sells for $20 a share The company is expected to pary a dividend of $1 a year from now and sell for $23 per share at year-end. Calculatie the expected return on the stock. (2 marks) c. Analysts believe the price for the tiock of Sechaba is correct at $20 and 30000 shares are cunstanding Sechaba also has $20000 deta wh a yield to maturity of 98 . The fim is in the 25% marginal tax brackets. Caiculate the weighted average cost of capital (WACC) for Sechaba Lud