Question: Example 7: X Ltd. is a company having its shares quoted in major stock exchanges. Its share current market price after dividend distributed at the

Example 7: X Ltd. is a company having its shares quoted

Example 7: X Ltd. is a company having its shares quoted in major stock exchanges. Its share current market price after dividend distributed at the rate of 20% per annum having a paid up shares capital of 10 lakhs of 10 each. Annual growth rate in dividend expected is 2%. The expected rate of return on its equity capital is 15%. Calculate the value of X Ltd.'s share based on Gordon's model

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