The following information is given: Profit after tax ₹ 1,10,000 10% Preference shares of ₹ 100 each. ₹ 1,00,000 Equity shares of ₹ 100 each ₹ 5,00,000 Normal rate of return 16% 80% of the profits are distributed as divid

CS Executive · Corporate and Management Accounting · PYQS · December 2024
The following information is given: Profit after tax ₹ 1,10,000 10% Preference shares of ₹ 100 each. ₹ 1,00,000 Equity shares of ₹ 100 each ₹ 5,00,000 Normal rate of return 16% 80% of the profits are distributed as dividend by the company Calculate value per equity share by dividend rate method.
(A) ₹ 100
(B) ₹ 90
(C) ₹ 105
(D) ₹ 95

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Valuation

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