Question: The following information is given for Alpha Ltd. Earnings per share 12 Dividend per share 3 Cost of Capital 18% Internal Rate of

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)      

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