What will be the market price of the share at the end of the year, if: 2) A dividend is not declared?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Example 5: ABC Ltd. has a capital of 710 lacs in
equity shares of 7100 each. The shares are currently
quoted at par. The company proposes declaration of a
dividend of 710 per share at the end of the current
financial year. The capitalisation rate for the risk class
to which the company belongs is 12%.
What will be the market price of the share at the end of
the year, if:
2) A divicdend is not declared?
Assuming that the company pays the dividend and has
net profits of 75,00,000 and makes new investment of
*10 lacs during the period, how many new shares must
be issued. Usc the MM Model.
Transcribed Image Text:Example 5: ABC Ltd. has a capital of 710 lacs in equity shares of 7100 each. The shares are currently quoted at par. The company proposes declaration of a dividend of 710 per share at the end of the current financial year. The capitalisation rate for the risk class to which the company belongs is 12%. What will be the market price of the share at the end of the year, if: 2) A divicdend is not declared? Assuming that the company pays the dividend and has net profits of 75,00,000 and makes new investment of *10 lacs during the period, how many new shares must be issued. Usc the MM Model.
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