Question: Question Two 120 marks} 2.1 Write short notes with examples on the following (10 marks) a) Risk aversion b) Capital Rationing 2.2 Telkom is expected

 Question Two 120 marks} 2.1 Write short notes with examples on

Question Two 120 marks} 2.1 Write short notes with examples on the following (10 marks) a) Risk aversion b) Capital Rationing 2.2 Telkom is expected to grow at an annual rate of 396 for the foreseeable future. The current prots of Telekoni are R1000 000 and have not been paid as dividends. What is the value of Telkom assuming the market interest is at 6% ? (10 marks)

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