Find out the price of equity shares

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Reference no: EM13684375

Question 1: Following are the details relating to three companies which are the identical of r

ABC Ltd MNC Ltd XYZ Ltd

Cost of capital 10% 10% 10%

earnings per share Rs. 10/- Rs. 10/- Rs. 10/-

rate of return expected 5% 5% 5%

Dividend payout ratio i)25%

ii) 50%

iii)75%

iv) 100%

Find out the price of equity shares using Walter's and Gordon's payout?

Reference no: EM13684375

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