The face value of the share is Rs 10 and the company paid dividend @ 20% last year it is expected to grow at 6% in future at constant rate , required rate is 12% . Assuming expected growth rate & required rate of return remain same at what will be the price of share after 2 years a. Rs 35.38 b. Rs 38.25 c. Rs 36.75 d. Rs 40.40

The face value of the share is Rs 10 and the company paid dividend @ 20% last year it is expected to grow at 6% in future at constant rate , required rate is 12% . Assuming expected growth rate & required rate of return remain same at what will be the price of share after 2 years a. Rs 35.38 b. Rs 38.25 c. Rs 36.75 d. Rs 40.40

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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