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NEW QUESTION: 1
A. Option C
B. Option A
C. Option D
D. Option B
Answer: B,D
NEW QUESTION: 2
A. Option C
B. Option B
C. Option A
D. Option D
Answer: C
NEW QUESTION: 3
Section C (4 Mark)
Pizer Drugs, a large drugstore chain, had sales per share of Rs122 in 1993, on which it reported earnings per share of Rs2.45 and paid a dividend per share of Rs1.12. The company is expected to grow 6% in the long term, and has a beta of 0.90. The current Risk Free Rate is 7%.
Estimate the appropriate Price for Pizer Drug and what would the profit margin need to be to justify the price per share if the stock is currently trading for Rs34 per share, assuming the growth rate is estimated correctly,
A. Rs 21.05 and 5.25%
B. Rs 18.54 and 3.75%
C. Rs20.18 and 4.12%
D. Rs 19.87 and 3.42%
Answer: D
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