A Ltd. has 20,000 shares of ₹100 each. The company is contemplating to declare a dividend of ₹5 per share at the end of the current year. The capitalization rate of the company is 10%. Calculate the value of share if div

CS Executive · Financial and Strategic Management · PYQS · December 2021
A Ltd. has 20,000 shares of ₹100 each. The company is contemplating to declare a dividend of ₹5 per share at the end of the current year. The capitalization rate of the company is 10%. Calculate the value of share if dividend is not declared.
(A) ₹100
(B) ₹105
(C) ₹110
(D) ₹115

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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