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2 Chis is a subjective question, hence you have to write your answer in the Text-Field given below. The following information is available about Kavita

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2 Chis is a subjective question, hence you have to write your answer in the Text-Field given below. The following information is available about Kavita Musicals [ 5 Marks] EPS = Rs. 5, Rate of return required by shareholders =16%. Assuming that the Gordon valuation model holds, what rate of return should be earned on investments to ensure that the market price is Rs. 50 when the dividend payout is 40%

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