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QUESTION TWO Wanya Wanya Company Ltd . , has 1 0 0 , 0 0 0 shares outstanding the current market price of the shares
QUESTION TWO
Wanya Wanya Company Ltd has shares outstanding the current market price of the shares K each. The company expects the net profit of K during the year and it belongs to a rich class for which the appropriate capitalisation rate has been estimated to be The company is considering dividend of K per share for the current year.
REQUIRED
What will be the price of the share at the end of the year.
i if the dividend is paid and
ii if the dividend is not paid.
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