Following information provided by B Ltd. : Last Earning Per Share (EPS) of the company = ₹75 per share Company's dividend pay-out ratio = 40% Required rate of return from equity investment = 18% By using capitalization e
CS Executive · Corporate and Management Accounting · PYQS · December 2019
Following information provided by B Ltd. : Last Earning Per Share (EPS) of the company = ₹75 per share Company's dividend pay-out ratio = 40% Required rate of return from equity investment = 18% By using capitalization earning method, the value of equity will be (if dividend are expected to grow at a constant rate of 10% per annum) :
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Financial Management
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