Calculate the price of the shares at the end of the year

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Question - X Ltd., had 25,000 equity shares of Br. 100 each outstanding on 1st January, the shares are issued at par in the market, the company removed restraint in the dividend policy, the company ready to pay dividend of Br. 15 per share for the current calendar year. The capitalization rate is 15%. Using MM approach assuming that no taxes, calculate the price of the shares at the end of the year?

Reference no: EM132644119

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