A company has currently 2,000 equity shares of ₹100 each and its earnings are ₹20,000. Its current market price is ₹110 and the growth rate of EPS is expected to be 5%. The cost of equity is ............

CS Executive · Financial and Strategic Management · PYQS · December 2020
A company has currently 2,000 equity shares of ₹100 each and its earnings are ₹20,000. Its current market price is ₹110 and the growth rate of EPS is expected to be 5%. The cost of equity is ............
(A) 10.94%
(B) 9.55%
(C) 9.95%
(D) 11.60%

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic