::: vuaskari.com ::: Re: [ vuZs.net ] MGT201 ,MGT411..

i need also the solution of mgt201 

AAssssiiggnnmmeenntt ## 0022 MMaarrkkss:: 2200

"Stock and Bond Valuation & CAPM"

 

 

QQuueessttiioonn ## 0011

 

 

Current investigation has gathered the following financial data from ABC Company. You are required to calculate the following:

 

 

Bond: Calculate the value of a Rs. 5,000 (par value) bond paying interest at an annual coupon interest rate of 10% with 10 years maturity and the required return on similar‐risk bonds is currently a 12% annual rate paid annually.

 

 

Common stock: Company has recently paid annual dividend of Rs.1.50 per common share this year. The Company expects earnings and dividends to grow at a rate of 7% per year for the anticipated future. What required rate of return for this stock would result in a price per share of Rs. 32?

 

QQuueessttiioonn ## 0022

 

 

  

 

Using the basic equation of capital asset pricing model (CAPM), solve followings for the unknown.

 

1. Find the risk free rate of return with a required rate of return of 18% and a beta of 1.50 when the market return is 16%.

 

2. Find the beta for a stock with a required rate of return of 15% when the risk free rate of return and market risk premium are 10% and 2.5% respectively.

                                                                                                    

(Show complete calculations and provide all formulas as they carry marks)

 

 

 

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On Sat, Jun 11, 2011 at 1:12 PM, mc100203787 Attiqa Binte Yaqoob <mc100203787@vu.edu.pk> wrote:

Plz i need idea sol for Mgt 411 gdp and Mgt 201 latest assignment,ill b grateful...

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