Question

A share is quoted at Rs. 60. An investor expects the company to pay a dividend of Rs. 3 per share, one year from now. The expected price of share after one year is Rs. 78.50. If the beta of the share is 1.5, the risk free rate is 6% and the market risk premium is 10%, what would be the required rate of return?

A 20%
B 21%
C 22%
D 23%
Practice Next

Relevant for Exams:

Hey! Ask a query