Question: 2. Section #2 2 3 4 Atten Question 3 Revisit Later The stock of Apsara Lid. is currently trading at a price of RS. 500.

2. Section #2 2 3 4 Atten Question 3 Revisit Later The stock of Apsara Lid. is currently trading at a price of RS. 500. Another stock, Reynolds (with similar cost of equity, i.e. 20%) is trading at Rs. 400 per share. If the current dividend (per share) paid by both Reynolds and Apsara is the same, then what could be the reason(s) behind the difference in stock prices of both these companies. Explain your answer with adequate rationale. [4 marks]

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