A company has outstanding 2,00,000 equity shares of ₹100 each and 5,00,000 8% preference shares of ₹10 each. Apart from the dividend on preference shares, the company has paid a dividend of ₹12, ₹13.2 and ₹14.52 respecti
CS Executive · Financial and Strategic Management · PYQS · June 2023
A company has outstanding 2,00,000 equity shares of ₹100 each and 5,00,000 8% preference shares of ₹10 each. Apart from the dividend on preference shares, the company has paid a dividend of ₹12, ₹13.2 and ₹14.52 respectively for last 3 years on its equity shares. If the current market price of equity shares is ₹140, the cost of equity share capital as per Dividend Growth Model approach will be:
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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