Question: What will be the expected dividend per share for year 2 if the expected EPS for year 2 is Rs. 7.0 and the target payout

What will be the expected dividend per share for year 2 if the expected EPS for year 2 is Rs. 7.0 and the target payout ratio and adjustment rates are 0.4 and 0.5 respectively? Assume that the Lintner model applies.

Rs. 2.4

Rs. 2.1

Rs. 2.80

None of them

Rs.1.8

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