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The following information is given for Alpha Ltd: Earnings per share Rs. 15, Cost of capital 12%, rate of return on investment is 15%, Retention

The following information is given for Alpha Ltd: Earnings per share Rs. 15, Cost of capital 12%, rate of return on investment is 15%, Retention Ratio is 60%. 1. Calculate the market price per share using Gordon's formula. 2. Comment whether it is it a growth or declining firm and what should be the optimum payout ratio according to Gordon Model

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