A Company Ltd., has 50,000 shares outstanding. The current market price of the shares is ₹50 each. The company expects the net profit of ₹1,00,000 during the year and it belongs to a risk class for which the appropriate
CS Executive · Financial and Strategic Management · PYQS · December 2020
A Company Ltd., has 50,000 shares outstanding. The current market price of the shares is ₹50 each. The company expects the net profit of ₹1,00,000 during the year and it belongs to a risk class for which the appropriate capitalisation rate has been estimated to be 25%. The company is considering dividend of ₹10 per share for the current year. What will be the price of the share at the end of the year, if the dividend is not paid ?
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Financial Management
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