Price of equity shares using waltirs model

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Reference no: EM133121479

Question: Following details are related to three companies which are identical expect in term of ‘r'

Company ABC Ltd MNC Ltd XYZ Ltd

Cost of capital 10 % 10% 10 %

Earnings per share 10 % 10% 10 %

Rate of return expected 5% 10% 15 %

Dividend payout ratio

i) 25 %

ii) 50 %

iii) 75 %

iv) 100 %

Find out the price of equity shares using waltir's model

Reference no: EM133121479

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