Given the Following Information, Calculate the Expected Capital Gains Yield

question 42

Multiple Choice

Given the following information, calculate the expected capital gains yield for Limpopo Pumas Inc.: beta = 0.6; rM = 15%; rRF = 8%; = R2.00; P0 = R25.00.Assume the share is in equilibrium and exhibits constant growth.

• A) 3.8%
• B) 0%
• C) 8.0%
• D) 4.2%
• E) None of the above.

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Definitions:

Customer Retention

The activities and actions companies and organizations take to reduce the number of customer defections and to maintain a loyal customer base.

Customer Satisfaction

An assessment of the degree to which a company's products or services exceed or fulfill the anticipations of the consumer.

Financial Value

The monetary worth or importance of an asset, investment, or transaction determined through market dynamics or financial assessment.

Customer Retention

The strategies and actions companies take to prevent customers from switching to a competitor and to encourage repeated business.