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Determine the value of the stock

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Soft Cola currently pays a dividend of Rs.4.5 per share on its common stock. The dividend is expected to grow at a rate of 9%. The risk-free rate is 6% and the Return from the market is 12%. The beta for the stock is 0.98. Determine the value of the stock. If the stock is currently trading at Rs.90, will you be interested in buying the stock?

A bond is issued with a face value of Rs.30, 000. It offers a coupon of 7%, and the bond will mature in 15 years.

Reference no: EM133114904

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