Three of five main states in industry life cycle of product

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Reference no: EM131998276

a. BMIG Ltd has a current share price of $12.13. It is expected to pay $0.73 in dividends next period and it has a growth rate of 12%. Estimate the cost of equity capital for BMIG Ltd.

b. An investor in Australia would like to set up an international portfolio with an expected return of 18%. Assuming a risk-free rate of return in Australia of 3%, a world risk-free rate of 3% and an expected return on the world market portfolio of 25%, what is the required beta for the portfolio to achieve this expected return?

c. Discuss three of the five main states in the industry life cycle of a product?

Reference no: EM131998276

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