An investor expects a dividend of ₹8 per share for each of 5 years and a selling price of ₹120 at the end of 5th year. If his required rate of return is 10%, the share is a good buy now at a price of (PVFA 10, 5 = 3.791
CS Executive · Corporate and Management Accounting · PYQS · June 2022
An investor expects a dividend of ₹8 per share for each of 5 years and a selling price of ₹120 at the end of 5th year. If his required rate of return is 10%, the share is a good buy now at a price of (PVFA 10, 5 = 3.791 and PVF 10, 5 = 0.621):
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Financial Management
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