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Question 4 [12 Marks) Aspen Pharmaceutical company's beta is 15 The current risk-free rate is 45 percent and the market nisk premium is 9 percent
Question 4 [12 Marks) Aspen Pharmaceutical company's beta is 15 The current risk-free rate is 45 percent and the market nisk premium is 9 percent Aspen currently (time 0) pays a dividend of R2 per share This dividend is expected to grow at a rate of 20 percent for the next 3 years The current share price is R30, and the consensus of security analysts is that this price will increase by 50 percent by the end of year 2 Required. 41 Under these circumstances, would you purchase this share? Based on your answer in 4 1 above, would you buy Aspen's share? Explain (10) (2) 42
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