An investor wants to invest in the equity shares of XYZ Ltd for one year. The company is expected to declare a dividend of ₹ 3 per share. Further, a leading security analyst has projected the year-end target price of thi

CS Executive · Corporate and Management Accounting · PYQS · June 2024
An investor wants to invest in the equity shares of XYZ Ltd for one year. The company is expected to declare a dividend of ₹ 3 per share. Further, a leading security analyst has projected the year-end target price of this company's share at ₹ 160. Assume that the required rate of return is 10%. The fair price of the share is:
(A) ₹ 111
(B) ₹ 145.45
(C) ₹ 145
(D) ₹ 148.45

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Corporate Accounting

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