Question
1.A company currently has 100,000 outstanding shares @ Rs. 100 each. The company is contemplating to declare a dividend of Rs. 6 per share at
1.A company currently has 100,000 outstanding shares @ Rs. 100 each. The company is contemplating to declare a dividend of Rs. 6 per share at the end of this year. The equity capitalization rate is 10% for the company. The net income of the company is Rs. 10,00,000 and new investment needs are of Rs. 20,00,000 then, the number of new shares required to be issued if the company declares the dividend?
2 A company currently has 100,000 outstanding shares @ Rs. 100 each. The company is contemplating to declare a dividend of Rs. 6 per share at the end of this year. The equity capitalization rate is 10% for the company. The net income of the company is Rs.10,00,000 and new investment needs are of Rs. 20,00,000 then, the number of new shares required to be issued if the company does not declare the dividend?
3.A company currently has 100,000 outstanding shares @ Rs. 100 each. The company is contemplating to declare a dividend of Rs. 6 per share at the end of this year. If equity capitalization rate is 10% for the company then, the price per share if the company does not declare the dividend would be?
4.A company currently has 100,000 outstanding shares @ Rs. 100 each. The company is contemplating to declare a dividend of Rs. 6 per share at the end of this year. If equity capitalization rate is 10% for the company then, the price per share if the company declares the dividend would be.?
5.The dividend payout ratio of a company is 40% and return on equity is 20%. If EPS is $5 per share, dividends grow at a rate of 12%, and the equity capitalization rate is 12.5%, then the price per share for the company would be?
6.The EPS of an all equity-funded company is $8 and cost of capital is 10%. The price per share for the company if constant retention ratio is 25% and internal rate of return is 15%, would be?
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