Question: a. Analyze any three (3) technical analysis tools Meanwhile, Sure Tool Bhd is expected to pay a dividend of RM2 in the upcoming year. The
a. Analyze any three (3) technical analysis tools
Meanwhile, Sure Tool Bhd is expected to pay a dividend of RM2 in the upcoming year. The risk-free rate of return is 4% and the expected return on the market portfolio is 14%. Analysts expect the price of Sure Tool Bhd shares to be RM22 a year from now. The beta of Sure Tool Bhd's stock is 1.25.
Required:
b. What is the market's required rate of return on Sure's stock? (5 marks)
c. What is the intrinsic value of Sure's stock today?
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