subject
Business, 15.02.2021 17:10 payshencec21

c). Sure Tool Company is expected to pay a dividend of Ksh.2 in the upcoming year. The risk free rate of return is 4% and the expected return of the market portfolio is 14%. Analysts expect the price of Sure Tool shares to be Shs.22 a year from now. The beta of Sure Tool Company’s stock is 1.25. Required: i). The market’s required rate of return on Sure Tool’s stock. (3 marks) ii). What is the intrinsic value of sure Tool’s stock today? (5 marks) iii). If the intrinsic value is sh.21 today, what must be the growth rate? (3 marks)

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 23:30
Using the exxon data as an example what would be the market capitalization of penny's pickles if each share is selling for $175.35?
Answers: 3
question
Business, 22.06.2019 01:20
Which of the following statements concerning an organization's strategy is true? a. cost accountants formulate strategy in an organization since they have more inputs about costs. b. businesses usually follow one of two broad strategies: offering a quality product at a high price, or offering a unique product or service priced lower than the competition. c. a good strategy will always overcome poor implementation. d. strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.
Answers: 1
question
Business, 22.06.2019 17:30
Fabian got into an accident on his way to work. he had multiple fractures in his leg. his doctor advised strict bed rest for at least three months.fabian is a freelance wildlife photographer who usually works on a contract basis, and this is his primary source of income. before the accident, fabian was planning his finances. which goal of his financial plan would fabian in getting through without pay for the next three months? the goal that requires the creation of a/an would fabian get through the next three months without pay.
Answers: 1
question
Business, 22.06.2019 17:30
Alinguist had a gross income of 53,350 last year. if 17.9% of his income got witheld for federal income tax, how much of the linguist's pay got witheld for federal income tax last year?
Answers: 2
You know the right answer?
c). Sure Tool Company is expected to pay a dividend of Ksh.2 in the upcoming year. The risk free rat...
Questions
question
Social Studies, 19.09.2019 14:10
question
History, 19.09.2019 14:10
question
Mathematics, 19.09.2019 14:10
question
Mathematics, 19.09.2019 14:10
question
Mathematics, 19.09.2019 14:10
Questions on the website: 13722362