Question
The beta coefficient of M Ltd. Is 1.40. The company has been maintaining 8% rate of growth in dividends and earnings. The last dividend paid
The beta coefficient of M Ltd. Is 1.40. The company has been maintaining 8% rate of growth in dividends and earnings. The last dividend paid was `4.00 per share. Return on government securities is 12% and return on market portfolio is 18%. The current market price of the share of M Ltd. Is `32.00. What will be the equilibrium price per share of M Ltd.?
Please give full explanation. I am unable to understand
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Accounting Principles Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara A. Trenholm, Valerie A. Kinnear, Joan E. Barlow
6th Canadian Edition
1118557328, 978-1118557327
