The earnings per share of a company is rs 8 and the rate of, Ask an Expert

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The earnings per share of a company is Rs 8 and the rate of capitalization applicable is 10%.

The company has before it, an option of adopting i) 50,ii) 75 iii) 100 per cent dividend payout ratio.

Compute the market price of the company's quoted shares as per Walter's Model if it can earn a return of (a) 15, (b) 10 and (c) 5 percent on its retained earnings.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9530077

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