find out the price of equity shares., Financial Management

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Following details are related to three companies which are identical except in terms of ''r''.
Company ABC Ltd. MNC Ltd. XYZ Ltd.

Cost of capital 10% 10% 10%
Earn per Share Rs.10 Rs.10 Rs.10
Rate of return
expected 5% 10% 15%
Dividend payout ratio: i. 25%, ii. 50%, iii. 75%, iv. 100%.
Find out price of equity shares using Walter''s and Gordon''s model. What is optimum payout?

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