Question: 3. You have been assigned the task to compute value of Kenya Commercial Bank. You decided to use discounted model and have forecasted future dividends.

3. You have been assigned the task to compute value of Kenya Commercial Bank. You decided to use discounted model and have forecasted future dividends. Explain practically, how you would determine the discounting rate (Hint- for example, stating you would use cost of capital (beta) will earn you zero mark, but explaining how practically to obtain cost of capital (beta) will earn you marks. 10 marks

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