5. From the following information compute the value per share of each of the companies under Walters

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5. From the following information compute the value per share of each of the companies under Walter’s Dividend Model when the dividend payout ratio is (i) NIL, (ii) 25%, and

(iii) 75%.

Particulars M Ltd. L Ltd. N Ltd.

Internal rate of return (r) 15% 12% 10%

Cost of Capital (k) 12% 12% 12%

Earnings per share (E) `10 `10 `10 What conclusion would you draw from your observation?

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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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Question Posted: Jul 23, 2024 07:01 AM

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5. From the following information compute the value per share of each of the companies under Walters

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Financial Management

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