The market price of A Ltd. is ₹200 per share as per Gordon Model. Earning per share is ₹20. Cost of capital is 11%. Rate of return on investment is 12%. What was the retention ratio ?

CS Executive · Financial and Strategic Management · PYQS · June 2023
The market price of A Ltd. is ₹200 per share as per Gordon Model. Earning per share is ₹20. Cost of capital is 11%. Rate of return on investment is 12%. What was the retention ratio ?
(A) 25%
(B) 50%
(C) 75%
(D) 100%

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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