Z Ltd. paid a dividend of 5for the current year. The dividend is expected to grow at 25% for the next 6 years and at 10% per annum thereafter. The…
CA Final · Advanced Financial Management · PYQS · November 2024
Z Ltd. paid a dividend of 5for the current year. The dividend is expected to grow at 25% for the next 6 years and at 10% per annum thereafter. The return of government bond is 13% per annum and market return is expected to be around 20%. The correlation between market return and Z Ltd. share return is 0.3733. The standard deviation of market return and Z Ltd. shares is 12% and 18% respectively. Round off to two decimal places. From the information given above, choose the correct answer to the Question no. 11 to 15: (5 × 2 = 10 Marks)
Suggested Answer and Working Notes:
Correct Answer: Option (A)
156.69
Topics: Security Valuation
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