AB Ltd. is expected to earn `30 per share. Company follows fixed payout ratio of 40%. The

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● AB Ltd. is expected to earn `30 per share. Company follows fixed payout ratio of 40%. The market price of its share is `200. Find the cost of existing equity if dividend tax of 15% is imposed on the distributed earnings when

(a) current level of dividend amount is maintained and

(b) dividend to the shareholders is reduced by the extent of dividend tax.

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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 24, 2024 10:05 AM

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AB Ltd. is expected to earn `30 per share. Company follows fixed payout ratio of 40%. The

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Financial Management

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