The target payout ratio for Dynamic Super Machines Ltd. is 0.4. The dividend per share for the current year is Rs. 14. The dividend per share in previous year was Rs. 12. The weightage given to the current year earning is 0.60. The number of equity share outstanding in the company is 10,00,000.   If P/E multiple is 9, applying Linter MODEL

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The target payout ratio for Dynamic Super Machines Ltd. is 0.4. The dividend per share for the current year is Rs. 14. The dividend per share in previous year was Rs. 12. The weightage given to the current year earning is 0.60. The number of equity share outstanding in the company is 10,00,000.

 

If P/E multiple is 9, applying Linter MODEL of dividend policy to the company, compute the market capitalization of the company.

 

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