Question

Show Work SAR​ company’s ordinary shares are expected to pay​ $ 1.7 per share in dividends...

Show Work

SAR​ company’s ordinary shares are expected to pay​ $

1.7

per share in dividends in

4

years and after which the dividends are expected to grow at

1​%

annually forever. Company​ ABC's shares have a beta of

1.7.

The​ long-term return of ASX200 is

7.9​%

and the return of​ T-bonds is

4.2​%.

a.What is the expected return of​ SAR’s shares according to the​ CAPM?

b.What is the implied price per​ share?

.

a. The expected return of​ SAR's share is

nothing​%

​(round

to 2

dp​)

b. The implied price per share is

​$nothing​(round

to 2​ dp)

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