Dividend theories
Gordon's Model
1. Raja company earns a rate of
12% on its total investment of RS, 600000 in assets. It as been 600000 outstanding common Shares at RS, 10 per share.
Discount rate of the firm
share is 10% and it has a policy of
retaining 40% of the earnings . Determine the price of it's share
using Gordon's model. what shall
happen to the price ofthe share if
the company has Payout of
40% (or)20 % ?
Answers
Answered by
8
1
Similar questions