Question
The stock of R. J. Enterprises (RJE) Ltd. Is currently trading at the Feni Stock Exchange (FSE) at Tk.50 per share. The stock paid a
The stock of R. J. Enterprises (RJE) Ltd. Is currently trading at the Feni Stock Exchange (FSE) at Tk.50 per share. The stock paid a per share dividend of Tk.3.00, which is expected to grow at a constant rate of 7 percent per year. The all-share market return at FSE is 13% and the risk free return is 4 percent. The RJE stock has a beta coefficient of 0.60.
- What value would you estimate for RJE stock?
- What would be your investment strategy with respect to RJE stock?
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John E Freunds Mathematical Statistics With Applications
Authors: Irwin Miller, Marylees Miller
8th Edition
978-0321807090, 032180709X, 978-0134995373
