gordon`s dividend capitalisation model , Financial Management

Assignment Help:
Considering the following information, what is the price of the share as per Gordon’s
Model?
Details of the Company
Net sales
Rs.120 lakhs
Net profit margin
12.5%
Outstanding preference
shares
Rs.50 lakhs@ 12%
dividend
No. of equity shares
25, 000
Cost of equity shares
12%
Retention ratio
40%
Rate of interest (ROI)
16% . How to slove this problem

Related Discussions:- gordon`s dividend capitalisation model

Cost of capital, discuss the cost of capital in finance

discuss the cost of capital in finance

Explain total assets equal the sum of total liabilities, Why do total asset...

Why do total assets equal the sum of total liabilities and equity?  Explain. Assets = Liabilities + Equity Assets are the items of value that a business owns. Liabilities ar

Aims of financial services authority, Aims of FSA The aim of FSA is to ...

Aims of FSA The aim of FSA is to promote efficient, orderly and fair markets, and to help retail consumers to get a fair deal. In fact, FSA has set out its aims under three bro

Agency relationships, conflicts between shareholders and government in agen...

conflicts between shareholders and government in agency relationship

Explain the procedure to find out irr, Q. Explain the Procedure to Find Out...

Q. Explain the Procedure to Find Out IRR? Procedure to Find Out IRR:- Step I : Compute the fake payback period   Fake Payback Period = Initial Cash Outflows / A

Stock exchange of hong kong, Stock Exchange of Hong Kong Securities tra...

Stock Exchange of Hong Kong Securities trading in Hong Kong started in 1866; however, the first formal stock market, the Association of Stockbrokers in Hong Kong, was establish

Net present Value, Given below are the cash flows of a project. Find out th...

Given below are the cash flows of a project. Find out the net present value of the project. Cost of capital is 18% and initial investment is Rs. 2,00,000. Year Cash Flows (lakhs)

Operating cyle, discuss the applicabilty of the operating cycle in a vegeta...

discuss the applicabilty of the operating cycle in a vegetable growing business

Plugging back of the future - important source of capital, Plugging back of...

Plugging back of the future of profit means the reinvestment by the concerns of its surplus in the business. it is an internal financial of the business and it is more suitable for

Why do businesses spend time effort and money, Why do businesses spend time...

Why do businesses spend time, effort, and money to produce forecasts?  Explain. Businesses fail or succeed depending on how well prepared they are to deal with the situations t

lizzy

1/21/2013 3:42:35 PM

kindly help me to answer the question

varun

1/21/2013 4:04:17 PM

plz solve

Yeshitila

1/27/2013 5:04:09 PM

Kindly show me how to solve.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd