Section C (4 Mark)Mohan recommend that the stock of AZB Ltd.

Vendor: AAFM
Product: CWM_LEVEL_2
Update on: Jul 30, 2025
Questions: 1259

AAFM CWM_LEVEL_2 Question Answer

Section C (4 Mark)

Mohan recommend that the stock of AZB Ltd. is a good purchase at Rs. 25. You do an analysis of the firm, determining that the Rs. 1.40 dividend and earnings should continue to grow indefinitely at 8% annually. The firm’s beta co-efficient is 1.34 and the yield on Treasury bills is 7.4%. If you expect the market to earn a return of 12 % should you follow Mohan’s suggestion?

No, one should not buy the stock at Rs. 25

No, One should sell the stock at Rs. 25

Yes, one should buy the stock at Rs. 25

None of the above