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Hi tutor
In an online mock for p4, there is a 12 marks in compulsory question
Please guide me how to solve this, Data of two companies are given and it has been asked to compare their cost of equity with CAPM and actual share holders return, below is the data of just one companyRevenue is 432, 567, 693, 810 all in lire, million (year 2011 to 2014)
PAT is 55, 76, 102, 126 all in lire, million (year 2011 to 2014)
Share price (lire) 1,058 , 1,330, 1,620, 2,001 (year 2011 to 2014 )
Equity beta 2014 1.55
Yield on treasury bills 19%
Consumer price index (2011 to 2014) 450.3, 610.2, 773.1, 924.2
Stock market index (year 2011 to 2014) 5,005, 6,002, 7,450, 9,470
How to find ke from this date
I’m unable to understand from the solutions and they have not given workings or any formula but just printed final solution for this part of questions
Please guide meI am really sorry, but I have spent the last three hours answering questions and I cannot produce answer to other companies mock exams. I am happy to help with problems with past exam questions, but not with a mock exam. Sorry, but you are going to have to email whichever company you bought the exam from 🙁
That’s okay, I received that from becker, but I don’t want to waste time if it’s not the part of syllabus. I’ve not seen any past paper with such question. I don’t know why they included this part in compulsory question
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