Q:3/ Radiant Corporation, a market leader dealing in refrigeration products, has been paying dividend consistently over last several years (Dividend of 12% on face value of Rs.100). The growth rate of dividend on an average has been 12%. The capitalization rate of Radiant Corporation is 16%. Consistent with its developmental philosophy Radiant Corporation acquired a technology for a new refrigerant that called for huge investment but offered a market potential of growth of 14% in earnings and dividends as well. Radiant had always believed in financing projects through internal accruals and never faced any problems in funding the growth opportunities as well as maintaining the dividend. It was for the first time the management of Radiant faced a situation where it had to compromise the dividend for the sake of implementing a new project but to have better growth. The management decided to skip the dividend for next three years. However, as a measure of good corporate governance and to reassure the investors it announced that the dividend would re-commence in 4 years from now at Rs 12 only and would offer better growth of 14% instead of 12%. What do you think would the impact on the price of shares of Radiant Corporation in the market of the announcement of new project and resultant postponement of dividend? [6.00) N 0:47 Networking Ltd the leaders in networking business in the country has been enioving its (6) ENG