Symphony Limited is an all equity financed company. It has 10 million shares outstanding and is expected to earn net cash profits of Rs80 million. Shareholders of the company has an opportunity cost of capital of 20%. 1. Determine the company share price if the company retained 40% of profits and invested these funds to earn 20% return. Will the share price be different if the firm retained 60% profits to earn 20%?

The share price should be Rs 88 where the formula given was 80+0.64 divided by 10. This does not give Rs 88.My question is how to calculate the share price using the question above.