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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education