Question: PQR Ltd is currently having 5 , 0 0 , 0 0 0 number of equity shares of the face value of Rs 1 0

PQR Ltd is currently having 5,00,000 number of equity shares of the face value of Rs 10 each. It is expected that company will have net profit of Rs.50,00,000. Company except 12% return on investment. The cost of equity is 10%. Find out the market price per share according to Gordon model under payout ratio of 50%.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Now compute all the liquidity and working management ratios ( minumum of 10 ratios in total ) and give your analysis and recommendations( analysis and recommendations should be explained in brief)...

Q:

A Ltd acquired the following non-current investments on 1 April 2015: . 4 million equity shares in B Ltd, by means of an exchange of one share in A Ltd for every one share in B Ltd, plus Rs. 6.05...

Q:

XYZ Ltd. has the following capital structure: Source Description Amount Equity share capital 100 lac shares of face value Rs lacs 1000 Rs 10 each Reserves and surplus Rs 1600 lacs Debentures 2000...

Q:

A firm has financed its operations by borrowing from banks and issuing long-term bonds and equity. The short-term bank debt has a book value of $1 million and pays 3% interest. The 30-year bonds (5%...

Q:

A firm has financed its operations by borrowing from banks and issuing long-term bonds and equity. The short-term bank debt has a book value of S1 million and pays 3% interest. The 30-year bonds (5%...

Q:

can you please explain how we get the answers? Treasury Shares............... 2,720 (c) Cash Share Premium-Treasury......... Treasury Shares........... 240 2,480 Pr. 15-164-Share dividends. The...

Q:

I need number 4 "Refer to Module IV requirement 2 and the file named 20X9 attrib.xlsx WP 11-3A. Enter the sample size for this test." Module IV: MUS Sampling-Factory Equipment Additions Richard...

Q:

Please answer the yellow Blank If the firm accepts the debt proposal, then the following are the details of the bonds: 20 Need Numbers/Formulas in them Number of years: Type: Annual Coupon Rate...

Q:

I need help on part 3 if possible please! 3. Chart of T-Accounts Create a chart of T-Accounts and post each journal entry to the appropriate accounts. 2. Journal Entry List Record entries from the...

Q:

please help just trying to work through City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $20,400. In addition, City paid sales tax and title fees of $630 for the...

Q:

For the year 2019, PQR Corporation made $2,600,000 in gross revenues and $650,000 in operation and maintenance costs. Depreciations of its capital assets for the year amounted to $260,000. The...

Q:

Use the given decision tree to answer the questions that follow. Payoffs are profits/losses. s1 (0.75) -$1,200 s2 $15,000 st -$3,200 s2 (0.25) $17,700 a) The expected value at node A, EV(A) is $ b)...

Q:

17. Analyze Online: Locate the website for Walmart (https://corporate.walmart.com/), which provides an online store for consumers as well as corporate information. Within the website, locate the...

Q:

With corporate strategy of large organizations in mind, choose the most accurate statement. a . It is necessary to define the businesses in which an organization will participate. b . It defines the...

Q:

4. What are the advantages and disadvantages of the Boomerang Water Corporation buying an offthe shelf integrated HR database system? Jack Newman had recently been appointed regional direc-tor of...

Q:

4.1 Explain multiple uses of job analysis in HR decisions.

Q:

3. What internal factors are required to enable organiz ational adaption to technological changes?