Glass Art Manufacturing Berhad has a beta of 1.50, the risk-free rate of interest is currently 12
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Question:
Glass Art Manufacturing Berhad has a beta of 1.50, the risk-free rate of interest is currently 12 percent, and the required return on the market portfolio is 18.00 percent. The company plans to pay a dividend of RM1.96 per share in the coming year and anticipates that its future dividends will increase at an annual rate consistent with that experienced over the 2016-2018 period.
Year Dividend (RM)
2016 1.68
2017 1.77
2018 1.86
Estimate the value of Glass Art Manufacturing's stock. (Remark: Please workout the calculation with the clear formula)
Related Book For
Managerial Economics
ISBN: 978-0133020267
7th edition
Authors: Paul Keat, Philip K Young, Steve Erfle
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