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Use the following information on PWS Insurance to answer question 5 and 6. ...
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Use the following information on PWS Insurance to answer question 5 and 6.
John Mayor, an analyst, is reviewing his valuation of PWS Insurance (PWS). He has gathered the following information and made several assumptions regarding the company.
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· In addition to fully correcting the difference between PWS’s current market price and its intrinsic value, Mayor also projected a price appreciation of R3.77 and cash dividend of R0.71 over the next year.
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Calculate Mayor’s expected holding period return on PWS.