Anu Ltd has 50000 equity shares of Rs.10 each outstanding on 1st Jan. The shares are currently quoted at Rs.20 in the market. The company intends to pay a dividend of Rs. 2 per share for the current year. Its capitalization rate is 15% Using MM model and assuming no tax ascertain the price of the companies share a) when the dividend is declared b) When the dividend is not declared.
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a =900
b=1000 in a 2 % company cut
in b without company cut
b=1000 in a 2 % company cut
in b without company cut
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