25. Satya Systems Company has made net profit of 50 crore. It has announced to distribute 60...
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25. Satya Systems Company has made net profit of 50 crore. It has announced to distribute 60 per cent of net profit as dividend to shareholders. It has 2 crore ordinary shares outstanding. The company's share is currently selling at 240. In the past, it had earned return on equity at 25 per cent and expects to main this profitability in the future as well. What is the required rate of return on Satya's share?
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