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Compute price per share using Gordon's model when dividend payout ratio is (1) 35% and (II) 100%

Compute price per share using Gordon's model when dividend payout ratio is (1) 35% and (II) 100%

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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The following figures are collected from the annual report of XYZ Ltd.: Net profit Outstanding 12% preference shares No of equity shares Return on investment Cost of capital Rs 40,00,000 Rs 100,00,000 3,00,000 20% 15% Compute price per share using Gordon's model when dividend payout ratio is (1) 35% and (1) 100%
Transcribed Image Text:The following figures are collected from the annual report of XYZ Ltd.: Net profit Outstanding 12% preference shares No of equity shares Return on investment Cost of capital Rs 40,00,000 Rs 100,00,000 3,00,000 20% 15% Compute price per share using Gordon's model when dividend payout ratio is (1) 35% and (1) 100%
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