Question
QUESTION: (a) Which Systematic factors do you feel important for investors in developing countries? (b) How do you use P/E ratio in doing share valuation?
QUESTION: (a) Which Systematic factors do you feel important for investors in developing countries? (b) How do you use P/E ratio in doing share valuation? Explain with some example. (c) The ZBC Ltd has been growing at a rate of 5% per year in recent years, and it is expected this growth rate will continue in next three years, then it is likely to grow at the normal growth rate of 4% in next 2 years, after that it will grow at a rate of 3% perpetually. The required rate of return of the shares of investor is 10%, and the dividend paid by the company in last year was Rs 2. At what price would you as an investor be ready to buy this stock now?
NOTE-PLZ ANSWER THIS QUESTION BRIEFLY AND IN GREAT DETAIL(approx 3-4 pages). IF YOUR ANSWER WILL BE ACCORDINGLY I WILL SURELY GIVE AN UPVOTE.
Q.2. (1) Which Systematic factors do you feel important for investors in developing countries? (II) How do you use P/E ratio in doing share valuation? Explain with some example. (III) The ZBC Ltd has been growing at a rate of 5% per year in recent years, and it is expected this growth rate will continue in next three years, then it is likely to grow at the normal growth rate of 4% in next 2 years, after that it will grow at a rate of 3% perpetually. The required rate of return of the shares of investor is 10%, and the dividend paid by the company in last year was Rs 2. At what price would you as an investor be ready to buy this stock now? Q.2. (1) Which Systematic factors do you feel important for investors in developing countries? (II) How do you use P/E ratio in doing share valuation? Explain with some example. (III) The ZBC Ltd has been growing at a rate of 5% per year in recent years, and it is expected this growth rate will continue in next three years, then it is likely to grow at the normal growth rate of 4% in next 2 years, after that it will grow at a rate of 3% perpetually. The required rate of return of the shares of investor is 10%, and the dividend paid by the company in last year was Rs 2. At what price would you as an investor be ready to buy this stock nowStep by Step Solution
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