PQR company earns ₹10 per share, is capitalised at a rate of 10 per cent and has a rate of return on investment of 20 percent. If dividend payout ratio is 50%, what should be the price per share, according to Walter's mo

CS Executive · Financial and Strategic Management · PYQS · June 2021
PQR company earns ₹10 per share, is capitalised at a rate of 10 per cent and has a rate of return on investment of 20 percent. If dividend payout ratio is 50%, what should be the price per share, according to Walter's model?
(A) ₹200
(B) ₹150
(C) ₹125
(D) ₹225

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Dividend Policy

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