SAR companys ordinary shares are expected to pay $ 1.1 per share in dividends in 3 years and after which the dividends are expected to grow at 1% annually forever. Company ABC's shares have a beta of 1.7. The long-term return of ASX200 is 9.5% and the return of T-bonds is 3.4%.

a.What is the expected return of SARs shares according to the CAPM?

b.What is the implied price per share?

SAR company's ordinary shares are expected to pay $ 1.1 per share in dividends in 3 years and after which the dividends are expected to grow at 1% annually forever. Company ABC's shares have a beta of 1.7. The long-term return of ASX200 is 9.5% and the return of T-bonds is 3.4%. a. What is the expected return of SAR's shares according to the CAPM? b.What is the implied price per share? a. The expected return of SAR's share is % (round to 2 dp) b. The implied price per share is $ (round to 2 dp)