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This is all the information and its complete like this. QUESTION THREE [20] 3.1 The XYZ Company is registered on the stock market. The market

This is all the information and its complete like this. image text in transcribed
QUESTION THREE [20] 3.1 The XYZ Company is registered on the stock market. The market return is 18% and the risk-free rate is 8%. The company has paid R 3 per share in dividend, and it has a constant growth of 5%. 3.1.1 Calculate the expected return of the XZY share (use the CAPM) (4) 3.1.2 What is the intrinsic value of the XZY share? (6) 3.2 The SAPS is planning to buy five new police cars in 4 years. The cars are expected to cost R185 000 each. What equal monthly payment must the SAPS deposit into a sinking fund at 6% interest compounded monthly to achieve its goal? (7) What is the effective rate of interest on your credit card if the nominal rate is 18% per year, compounded monthly? (3) 3.3 QUESTION THREE [20] 3.1 The XYZ Company is registered on the stock market. The market return is 18% and the risk-free rate is 8%. The company has paid R 3 per share in dividend, and it has a constant growth of 5%. 3.1.1 Calculate the expected return of the XZY share (use the CAPM) (4) 3.1.2 What is the intrinsic value of the XZY share? (6) 3.2 The SAPS is planning to buy five new police cars in 4 years. The cars are expected to cost R185 000 each. What equal monthly payment must the SAPS deposit into a sinking fund at 6% interest compounded monthly to achieve its goal? (7) What is the effective rate of interest on your credit card if the nominal rate is 18% per year, compounded monthly? (3) 3.3

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