A shareholder approaches the manager of a firm with the following data for clarification.
|
Year |
Output |
Quantity |
Unit cost |
Fixed cost |
|
price (KES) |
(KES) |
(KES) |
||
|
2010 |
6,500 |
100 |
4,000 |
150,000 |
|
2012 |
7,400 |
250 |
4,500 |
150,000 |
The investor informs the manager that the firm’s share price at the Stock Market is KES 700. He requests the manager to compute the investor’s required rate of return. (5 Marks)
That is how the complete question is as given by the lecturer