Determine the optimum payout and the price of share

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Question:

Apex company which earns Kshs. 5 per share is capitalized at 10% and has a return on investment of 12%. Using Walter''s dividend policy model determine the optimum payout and the price of share at this payout.

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This assignment contains solution for the calculation of the dividend to be paid and the share price of the concerned share. The optimum dividend payout is to be calculated using the Walter model of dividend and thus accordingly share price is also calculated with the dividend payout ratio.

Reference no: EM132204334

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