A company has 20,000 equity shares of ₹200 each and its current earnings for equity shareholders is ₹3,60,000. The growth rate expected in EPS is 7%. The current market price of company's shares is ₹240 each. The approxi
CS Executive · Financial and Strategic Management · PYQS · December 2022
A company has 20,000 equity shares of ₹200 each and its current earnings for equity shareholders is ₹3,60,000. The growth rate expected in EPS is 7%. The current market price of company's shares is ₹240 each. The approximate cost of equity capital of the company on the basis of Earnings-price Ratio approach is : (A) 15% (B) 12% (C) 8% (D) 9%
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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