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Suppose that a T - bill rate is 6 % , market risk premium is 5 % , and beta for the DAR Inc. share
Suppose that a Tbill rate is market risk premium is and beta for the DAR Inc. share is Suppose further
that DAR Inc.s share has an expected dividend per share of R that the current price of the share is R and that
the expected price at the end of the year is R Assume a oneyear holding period.
What would be the required rate of return?
What would be the expected rate of return?
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