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Q 2 . ) The capitalization rate ( k e ) is 1 2 % , and the EPS is Rs . 2 0 .

Q2.) The capitalization rate (ke) is 12%, and the EPS is Rs.20. If the return on investments (r) are i)14%, ii)10%, iii)12%, show the impact of dividend policy on the share price for the given payout ratios of 25% and 75% using the Walter's model
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