The earning per share of a company is ₹10. It has an internal rate of return of 15% and the capitalization rate of the same risk class is 12.5%. If Walter's model is used, what should be the price of a share at optimum p

CS Executive · Financial and Strategic Management · PYQS · December 2020
The earning per share of a company is ₹10. It has an internal rate of return of 15% and the capitalization rate of the same risk class is 12.5%. If Walter's model is used, what should be the price of a share at optimum payout?
(A) 92
(B) 94
(C) 96
(D) 98

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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