Current market rate of X Ltd.'s equity share is ₹80 per share. The company is expected to pay a dividend of ₹4 per share with an annual growth of 10%. In this case the rate of return would be :

CS Executive · Corporate and Management Accounting · PYQS · June 2022
Current market rate of X Ltd.'s equity share is ₹80 per share. The company is expected to pay a dividend of ₹4 per share with an annual growth of 10%. In this case the rate of return would be :
(A) 5.5%
(B) 10.5%
(C) 12%
(D) 15%

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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