From the following information compute the value per share of each of the companies under Gordons Dividend

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● From the following information compute the value per share of each of the companies under Gordon’s Dividend Model assuming dividend payout ratios of 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) 15% 10% 5%

Cost of Capital (k) 10% 10% 10%

Also comment on the optimal dividend policy to be followed by individual firms.

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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 06:01 AM

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From the following information compute the value per share of each of the companies under Gordons Dividend

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Financial Management

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