The market price of J Ltd. is ₹ 200 per share as per Gordon Model EPS is ₹ 20 per share. The cost of capital is 11%. The rate of return on investment is 12%. What is the retention ratio ?

CS Executive · Financial and Strategic Management · PYQS · June 2024
The market price of J Ltd. is ₹ 200 per share as per Gordon Model EPS is ₹ 20 per share. The cost of capital is 11%. The rate of return on investment is 12%. What is the retention ratio ?
(A) 80%
(B) 50%
(C) 100%
(D) 60%

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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