Question: nut. lull 10. A company is considering distributing additional Rs 30.000 as dividends to its ordinary shareholders. The shareholders are expected to earn 18 per

nut". lull 10. A company is considering
nut". lull 10. A company is considering distributing additional Rs 30.000 as dividends to its ordinary shareholders. The shareholders are expected to earn 18 per cent on their investment. They are in 30 per cent tax and incur an average brokerage fee of 3 per cent on the reinvestment of dividends received. The rm can earn a return of 12 per cent on the retained earnings. Should the company distribute or retain Rs 80000

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