What will be the price per share

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The following data is available for Garner Limited:Earnings per share = Rs.6.00Rate of return = 18 percent

Cost of capital = 15 percent

(a) If Walter's valuation formula holds, what will be the price per share when the dividend payout ratio is 40 percent?

(b) If Gordon's basic valuation formula holds, what will be the price per share when the dividend payout is 40 percent?

Reference no: EM132785607

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