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  • Calculate the market value of share if the payout is 75%,...
Multiple choice

Calculate the market value of share if the payout is 75%, EPS of the company is Rs. 8, rate of capitalisation is 10% and the return on retained earnings is 15%.

  1. Rs. 100

  2. Rs. 70

  3. Rs. 90

  4. Rs. 50

  5. Rs. 80

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Value = D + IRR ÷ cost of capital ( E-D) ÷ cost of capital

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