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The beta of Alogene Enterprises is 1.25. Current risk-free rate in the market is 11 percent and Market Risk Premium (MRP) is 12 percent. Alogene

  1. The beta of Alogene Enterprises is 1.25. Current risk-free rate in the market is 11 percent and Market Risk Premium (MRP) is 12 percent. Alogene is expected to pay a dividend of Taka 3.50 which represents an 8 percent increase over the previous year. Currently, the shares of the company are selling at Taka 22 per share. Determine the equilibrium price of Alogene. Are Alogenes shares fairly priced?

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