Question
1) With the help of following figures CALCULATE the market price of a share of a company by using: Walters formula. (5mks) Dividend growth model
1) With the help of following figures CALCULATE the market price of a share of a company by using:
Walters formula. (5mks)
Dividend growth model (Gordons formula). (5mks)
| Earnings per share (EPS) | Shs 10 |
| Dividend per share (DPS) | Shs 6 |
| Cost of capital (Ke) | 20% |
| Internal rate of return on investment | 25% |
| Retention Ratio | 40% |
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Financial Markets And Institutions
Authors: Jeff Madura
5th Edition
0324027443, 9780324027440
