Question

A company paid dividend of Rs 8 per share in the immediately preceding period. Dividend is
expected to grow at 5% for one year, then at 15% rate for the next two years, after which it is expected
to grow at a 8% rate for ever. What is the fair price of the share if the required return is 14%?.
What type of mutual funds will you recommend while formulating the portfolio of investors looking
for income and and investors looking for growth ? How will you rate the performance of three mutual
funds on the basis of Treynor Ratio and Sharpe Ratio with the given information: Return of MFX=12% with Standard Deviation of 8% and Beta of 0.8; Return of MF-Y=14% with Standard
Deviation of 10% and beta value of 1.2; Return of MF-Z =16% with Standard Deviation of 12% and
beta of 1.6. The Return of NIFTY-50 (market index) is 20% with Standard Deviation of 14%. The
Return on T-Bills is 6%.

Answer 1

Answer:

thanks for free points....