Question

Following are the details relating to three companies.
Cost of capital
Earnings per share
Rate of return expected
ABC Ltd
10%
Rs. 10/-
5%
MNC Ltd XYZ Ltd
10%
10%
Rs.10/- Rs. 10/-
10%
20%
Find out the price of equity shares of each company using Walter's Model when,
Dividend payout ratios are:
25%
i.
ii. 50%
ili. 75%
iv. 100%
What is the optimum payout?​

Answer 1

Answer:

2

Explanation:

if3cos²a=2¼then find the value of a