Determine the Market price of share on the basis of Gordon's Model using following information. EPS: ₹5, Dividend Payout - 35%, Capitalization rate 8%, rate of return on investment - 12%.

CS Executive · Financial and Strategic Management · PYQS · December 2024
Determine the Market price of share on the basis of Gordon's Model using following information. EPS: ₹5, Dividend Payout - 35%, Capitalization rate 8%, rate of return on investment - 12%.
(A) ₹ 875
(B) ₹ 325
(C) ₹ 450
(D) ₹ 375

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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