MNO Ltd. share are quoted at  80 on BSE currently. The company pays Re.1 per share as dividend and the investors expects a growth rate of 5% per year. Compute:
i)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Expected rate of return
ii)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â If the required rate is 10% p.a., calculate the indicative market price
iii)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Advise on the basis of the indicative market price computed above whether it is profitable to invest in the shares of MNO Ltd. at its current price on BSE.
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