14. A company has at present 1,00,000 shares. The company requires `10,00,000 to finance a new project
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● 14. A company has at present 1,00,000 shares. The company requires `10,00,000 to finance a new project of which `4,00,000 would be available out of profits after paying `10,00,000 as dividends. The balance amount can be raised either by issuing new shares or new debentures. The company decides to procure finance through the issue of new shares.
The market price per share at the end of the current year is expected to be `120. If the Cost of Capital is 18%, determine the Present Value of a share using the M-M Model.
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Related Book For
Financial Management
ISBN: 9789352605606
1st Edition
Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana
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