The following information is given for Alpha Ltd. Earnings per share 12 Dividend per share
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Question:
The following information is given for Alpha Ltd.
Earnings per share | ₹ 12 | ||
Dividend per share | ₹ 3 | | |
Cost of Capital | 18% | | |
Internal Rate of Return On Investment | 22% | | |
Retention Ratio | 75% | | |
| | | |
Calculate the market price per share using
a. Gordon’s Dividend Model (5 Marks)
b. Walter’s Dividend Model (5 Marks)
Related Book For
Operations Management in the Supply Chain Decisions and Cases
ISBN: 978-0073525242
6th edition
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein
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