Market price of an equity share of face value 10 is 125 per share. Expected dividend is

Question:

Market price of an equity share of face value ₹10 is ₹125 per share. Expected dividend is 125% for the next year that is likely to grow at a constant rate of 10% p.a. forever. If an investor expects 15% returns on his/her investment, suggest him/her whether he/she should buy it or not. If yes, then at what price?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

Question Posted: