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Commerce · Q215

Business Finance

Graduate and Post Graduate · Commerce · question 215

Q215

From the following information of ABC Ltd, determine the market price of a share using Gordon's model. Total investment in assets = Rs. 10,00,000 Number of shares = 50,000 Total earnings = Rs. 2,00,000 Cost of capital = 16% Payout ratio = 40%

A.
Rs. 20
B.
Rs. 40
Answer
C.
Rs. 60
D.
Rs. 80

Answer: Option B

Solution

Answer: Option B
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