Question

From the Following information determine the market value of equity share of the company as per Walter Model: Earnings of the company - Rs. 500000/- Dividends Paid - Rs. 300000/- Number of Shares Outstanding - Rs. 100000/- Price Earning Ratio - 1:8 Rate of Return on Investment - 15% Hint : Cost of Captital (ke) is reciprocal of P/E Ratio.​

Answer 1

$\huge \sf16 \: : \: 7$