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Tindall Pty, which is financed entirely by equity, earns a constant return of 10% on its investments. The company has a constant dividend payout ratio of 40% and the earnings per share of the company is expected to be 50 cents at the end of the forthcoming year.

What is the predicted market value of each share of the company?

a. 200 cents

b. 206 cents

c. 333 cents

d. 500 cents

e. None of the above is correct

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M952415

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