B Ltd. has equity shares of ₹25 Lakh comprising of 25000 shares of ₹100 each in its capital structure. The current market price per share is ₹110 and profit after tax is ₹5 Lakh. The expected growth rate in earnings is 1
CS Executive · Financial and Strategic Management · PYQS · June 2022
B Ltd. has equity shares of ₹25 Lakh comprising of 25000 shares of ₹100 each in its capital structure. The current market price per share is ₹110 and profit after tax is ₹5 Lakh. The expected growth rate in earnings is 10%. On the basis of Earnings Price Ratio approach, the cost of equity will be:
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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