Multiple choice

Calculate the price of share when selling price of share is Rs. 100, dividend declared is Rs. 5 at the end of current year and capitalisation rate is 10% when dividend is not paid.

  1. Rs. 107

  2. Rs. 110

  3. Rs. 115

  4. Rs. 120

  5. Rs. 100

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

Use formulae of MM approach.