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1000 The cost of capital and rate of return on investment of WM Ltd. is 10% and 15% respectively. The company has one million equity

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1000 The cost of capital and rate of return on investment of WM Ltd. is 10% and 15% respectively. The company has one million equity shares of Rs. 10 each outstanding and its earnings per share is Rs. 5. Calculate the price per share in the following situation using Walter's Model. (a) 50% retention, and (b) No retention. [5 Marks]

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