.1 2 Siyavuma Ltd, a public company registered in at the JSE stock exchange, is expecting...
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.1 2 Siyavuma Ltd, a public company registered in at the JSE stock exchange, is expecting a return on equity (ROE) of 12% per year and expected earnings per share of R 4. Siyavuma's shareholders are expecting a dividend of R3 per share and require a rate of return of 10%. 1.1 What is the expected growth rate. (Show all your calculations) (4) 1.2 Calculate the intrinsic value of the XYZ stock and its P/E ratio. (Show all your calculations) The returns on Amanda Ltd's share over the past five years are reported in table below: Year 2015 2016 2017 2018 2019 Return 6% -12% 16% 38% 11% 2.1 Calculate the average return for on Amanda's share over the five years. 2.2 Calculate the variance and the standard deviation of Amanda's return over this period. (6) (2) (8) .1 2 Siyavuma Ltd, a public company registered in at the JSE stock exchange, is expecting a return on equity (ROE) of 12% per year and expected earnings per share of R 4. Siyavuma's shareholders are expecting a dividend of R3 per share and require a rate of return of 10%. 1.1 What is the expected growth rate. (Show all your calculations) (4) 1.2 Calculate the intrinsic value of the XYZ stock and its P/E ratio. (Show all your calculations) The returns on Amanda Ltd's share over the past five years are reported in table below: Year 2015 2016 2017 2018 2019 Return 6% -12% 16% 38% 11% 2.1 Calculate the average return for on Amanda's share over the five years. 2.2 Calculate the variance and the standard deviation of Amanda's return over this period. (6) (2) (8)
Expert Answer:
Answer rating: 100% (QA)
11 Expected Growth Rate Calculation The formula to calculate the expected growth rate using the Gordon Growth Model Dividend Discount Model is as foll... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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