walters and gordon model, Financial Management

Assignment Help:
Following are the details relating to three companies which are identical in terms of ''r''
ABC ltd MNC ltd XYZ ltd
Cost of capital 10% 10% 10%
Earnings per share 10 10 10
Rate of return expected 5% 5% 5%
Dividend payout ratio i)25%
ii)50%
iii)75%
iv)100%
Find out the price of equitu shares using walters and gordons model.what is thr optimum payout?

Related Discussions:- walters and gordon model

Debt holders versus shareholders, Debt holders versus Shareholders A se...

Debt holders versus Shareholders A second agency problem arises because of potential conflict between stockholders and creditors. Creditors lend finances to the firm at rates w

Define limit of theory of comparative advantage is realistic, What consider...

What considerations might limit the extent to which the theory of comparative advantage is realistic? Answer: The theory of relative advantage was initially advanced by the ninet

Discounting the expected cash flows in valuation process, After deter...

After determining the expected cash flows and appropriate interest rate, the last step in the valuation process is to find the total PV of all cash flows. The PV

Offshore financial center, Offshore Financial Center It is a location w...

Offshore Financial Center It is a location with banking facilities to accept deposits and make loans in currencies various from the currency's country of origin. Banks located

Explain swap dealer, Explain Swap Dealer A swap dealer is a market make...

Explain Swap Dealer A swap dealer is a market maker of swaps and predicts a risk position in matching opposite sides of a swap and in making sure that every counterparty fulfil

Examine about the risk-based auditing, Examine about the Risk-based auditin...

Examine about the Risk-based auditing A risk based audit will be reviewing the risk management process and considering main risks of the organisation as a whole. Risk manage

Types of traders in future and option markets, Types of Traders in Future a...

Types of Traders in Future and Option Markets: Hedgers Hedgers use the futures and options market principally for risk management purposes because of their exposure to pri

Compare and contrast mutual and stockholder, Compare and contrast mutual an...

Compare and contrast mutual and stockholder-owned savings and loan associations. A few savings and loan associations are owned by stockholders, just like commercial banks and ot

NET INCOME APPROACH.., You are required to compute the value of both the fi...

You are required to compute the value of both the firms using Net Income approach.

Final stage of career, Q. Final stage of career? The final stage in one...

Q. Final stage of career? The final stage in one's career is difficult for everyone but is it hardest for those who have had continued successes in the earlier stages. After se

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