A company earns ₹5 per share. The capitalization rate is 10% and rate of return on investment is 18%. What would be the value of share at optimum payout ratio ?

CS Executive · Financial and Strategic Management · PYQS · December 2021
A company earns ₹5 per share. The capitalization rate is 10% and rate of return on investment is 18%. What would be the value of share at optimum payout ratio ?
(A) ₹70
(B) ₹80
(C) ₹90
(D) ₹100

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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