From the following information compute the value per share of each of the companies under Walters Dividend
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● From the following information compute the value per share of each of the companies under Walter’s Dividend Model assuming dividend payout ratios of 0%, 25%, 50%, 75% and 100%.
Particulars X Ltd. Y Ltd. Z Ltd.
Earnings per share (E) `10 `10 `10 Rate of Return on Investment (r) 18% 10% 8%
Cost of Capital (k) 10% 10% 10%
Also comment on the optimal dividend policy to be followed by individual firms.
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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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