5. The EPS of a company is `10. It has an Internal Rate of Return of 15%...

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5. The EPS of a company is `10. It has an Internal Rate of Return of 15% and the capitalisation rate of its risk class is 12.5%. If Walter’s Model is used:

(a) What should be the optimum payout ratio of the company?

(b) What will be price per share at this payout?

(c) How shall the price of the share be effected, if a different payout were employed?

[C.S. Final June 2003]

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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 06:00 AM

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5. The EPS of a company is `10. It has an Internal Rate of Return of 15%...

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Financial Management

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