A Company has 5,000 shares of ₹100 each. The capitalisation rate is 12%. Income before tax is ₹2,00,000. Tax rate is 30%. Dividend pay-out ratio is 50%. Find Market Price Per Share (MPS) at the end of the current year ba
CS Executive · Financial and Strategic Management · PYQS · June 2021
A Company has 5,000 shares of ₹100 each. The capitalisation rate is 12%. Income before tax is ₹2,00,000. Tax rate is 30%. Dividend pay-out ratio is 50%. Find Market Price Per Share (MPS) at the end of the current year based on MM approach if dividend is paid.
Answer & Explanation:
Correct Answer: Option (D)
Official answer key: (D).
Topics: Dividend Policy
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