- 6 Marks
Question
I, me, and myself have shares in a company which paid a dividend of GH₵10 to its shareholders. The shares have a beta factor of 1.2. The risk-free rate of return and the market return are 15% and 20% respectively.
Required:
i. Calculate the return on the shares. (4 marks)
ii. Calculate the value of the shares. (2 marks)
Answer
- Tags: CAPM, Expected Return, Share Valuation
- Level: Level 2
- Uploader: Joseph