kindly assist 4.1. Use the information provided below to answer the following questions:...

70.2K

Verified Solution

Question

Accounting

image

kindly assist

4.1. Use the information provided below to answer the following questions: INFORMATION A retail investor bought 500 shares of XXX limited, a JSE-listed company, for R50 each on 1 January 2019. On 31 December 2022, the investor sold all the shares for R82 each. If the investor's return on investment for the period is 96%, determine the annual dividend per share. Assume that XXX limited follows a fixed dividend policy. ( 5 marks) 4.2. Study the information provided below and answer the following questions: INFORMATION A retail investor invested R100 000 in an investment portfolio comprising five equity securities. The amounts invested in each of the five assets and the betas of the securities are shown in the table below. REQUIRED: Calculate the beta of the investor's portfolio. (5 marks) 4.3. The market consensus is that Q-Tech Limited has a beta of 1.25 and a dividend growth rate of 6%. The coming year's dividend is R2.12 per share and the consensus estimate of the coming year's market return is 14%. T-bills currently offer a 6% return. Find the price at which Q-Tech's stock should sell (Hint: use the capital asset pricing model and the Gordon Growth model)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students