A common share currently has a beta of 1.5, the risk-free rate is 7% annually, and the market return is 12% annually. The share is expected to generate a constant dividend of R6.70 per share. A pending lawsuit has just been dismissed and the beta of the share drops to 1.2. Calculate the new price of the share.
A) R31.31
B) R67.00
C) R51.54
D) R46.21
E) Cannot be calculated
