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Supreme LLC has 100,000 outstanding shares of OMR 10 each. The company earns a rate of 24% on its investments and retains 50% of earnings

Supreme LLC has 100,000 outstanding shares of OMR 10 each. The company earns a rate of 24% on its investments and retains 50% of earnings as a policy. If Cost of Capital is 18%, calculate price of the share according to Gordons Model. The company has total investment of around OMR 1000,000 in assets.

If payout ratio changes to 10%, 90% how will share price change?Also comment on the optimal dividend policy for Superme LLC as per

Gordons Model.

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