a) An enterprise has a ß of 1.45, the Rf is 10% and expected return of the market portfolio is 16%. The enterprise has just paid a dividend of Kshs. 2 per share and it is expected that the growth will...

a) An enterprise has a ß of 1.45, the Rf is 10% and expected return of the market portfolio is 16%. The enterprise has just paid a dividend of Kshs. 2 per share and it is expected that the growth will be at 10% forever. Estimate the value of the share. (4marks) b) Assume that in the illustration above, question 6(i), the shares of the enterprise is expected to grow at 8% for 5 years. With the assistance of a table estimate the total present value of the share. (6marks.