PQR Ltd. has expected earnings at ₹40 per share which is growing at 9% annually. Company follows fixed pay out ratio of 60%. The market price of its share is ₹500. What is the current cost of equity?
CS Executive · Financial and Strategic Management · PYQS · June 2021
PQR Ltd. has expected earnings at ₹40 per share which is growing at 9% annually. Company follows fixed pay out ratio of 60%. The market price of its share is ₹500. What is the current cost of equity?
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Cost of Capital
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