12. XYZ Ltd. has a capital of `10,00,000 in equity shares of `100 each. The shares are currently quoted at par. The company proposes to declare a dividend of `10 per share at the end of the current financial year. The capitalization rate for the risk class to which the company belongs is 12%. What will be the market price of the share at the end of the year if:

(a) Dividend is not declared?

(b) Dividend is declared?

(c) Assuming that the company pays the dividend and has net profits of `5,00,000 and makes new investments of `10,00,000 during the period. How many new shares must be issued. Use M-M model.