A Ltd. has the following details: Return on Equity 15% Expected Earnings per share ₹5 Expected Dividend per share ₹3 Required Rate of Return 10% p.a. What is the expected growth rate and its price per equity ?

CS Executive · Corporate and Management Accounting · PYQS · June 2022
A Ltd. has the following details: Return on Equity 15% Expected Earnings per share ₹5 Expected Dividend per share ₹3 Required Rate of Return 10% p.a. What is the expected growth rate and its price per equity ?
(A) 4% and ₹60
(B) 6% and ₹60
(C) 4% and ₹75
(D) 6% and ₹75

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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