An investor is holding 100 shares of PQR Ltd. The current rate of dividend paid by the company is ₹10 per share. The long-term growth rate is expected to be 10% and the expected rate of return is 20%. Current market pric

CS Executive · Financial and Strategic Management · PYQS · December 2020
An investor is holding 100 shares of PQR Ltd. The current rate of dividend paid by the company is ₹10 per share. The long-term growth rate is expected to be 10% and the expected rate of return is 20%. Current market price of the share is:
(A) ₹110
(B) ₹112
(C) ₹120
(D) ₹111

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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