The earning per share of a company is ₹25. Its internal rate of return is 15% and capitalization rate of the risk category to which it belongs is 12%. If the retention ratio is 100%, the approx. market price of the share
CS Executive · Financial and Strategic Management · PYQS · June 2023
The earning per share of a company is ₹25. Its internal rate of return is 15% and capitalization rate of the risk category to which it belongs is 12%. If the retention ratio is 100%, the approx. market price of the shares according to Walter's model will be :
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Financial Management
Related Questions in this Topic
- Assume that a firm has accurately calculated the net cash flows relating to an investment proposal. If the net present v...
- A firm has EBIT of ₹ 50,000. Market value of 10% debt is ₹ 80,000 and overall capitalization rate is 20%. Market value o...
- A firm has inventory turnover of 4 and cost of goods sold is ₹ 7,50,000. With better inventory management, the inventory...
- 80% of sales of ₹ 12,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection p...
- A Company's Raw material storage period is 20 days; Finished goods storage period is 25 days; Receivables (Debtors) coll...