- B O Ltd., is intending to acquire substantial shares in S P Ltd., to acquire control in the company. The beta of SPL?s shares is 1.5 and the current market price of its each share is Rs.88. The company is consistently paying a dividend of Rs.17 per share every year and is expected to pay the same amount even in the future. The risk-free rate is 9% and the market rate of return is 15%. How much extra amount should BOL pay for each share over the current market price so that the price of the share of SPL is at equilibrium as per the CAPM approach?
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