Question
X LTD is expected to pay a dividend of Ksh 3.50 in the coming year. Dividends are expected to grow at the rate on 10%
X LTD is expected to pay a dividend of Ksh 3.50 in the coming year. Dividends are expected to grow at the rate on 10% per year. The risk free rate of return is 5% and the expected return on the market portfolio is 13%. The stock is trading in the market today at a price of Ksh 90.
a) What is the capitalization rate foe X Limited
b) What is the approximate Beta of X Ltd Stock
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
