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The beta of Nesbit Enterprises is 1.2. Current risk-free rate in the market is 10 percent and Market Risk Premium (MRP) is 12 percent. Nesbit

The beta of Nesbit Enterprises is 1.2. Current risk-free rate in the market is 10 percent and Market Risk Premium (MRP) is 12 percent. Nesbit 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 is selling at Taka 24 per share.

Determine the equilibrium price of Nesbit. Are Nesbits shares fairly priced, overpriced or underpriced? Explain.

Do it through Excel.

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