An investor bought a share for ₹50. The company paid a dividend of ₹3 for the current period. Long-term growth rate is expected to be 12% and expected rate of return is 15%. The current market price of share on the basis
CS Executive · Financial and Strategic Management · PYQS · December 2022
An investor bought a share for ₹50. The company paid a dividend of ₹3 for the current period. Long-term growth rate is expected to be 12% and expected rate of return is 15%. The current market price of share on the basis of fundamental valuation approach will be : (A) ₹45 (B) ₹86 (C) ₹112 (D) ₹101
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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