The equity shares of a company are currently selling at ₹80 per share and the company is expected to pay a dividend of ₹5 per share. If the rate of return is calculated as 16%, what is the growth rate ?

CS Executive · Corporate and Management Accounting · PYQS · December 2022
The equity shares of a company are currently selling at ₹80 per share and the company is expected to pay a dividend of ₹5 per share. If the rate of return is calculated as 16%, what is the growth rate ?
(A) 8.0%
(B) 9.75%
(C) 10.5%
(D) 12.75%

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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