Question

PQR Ltd. has currently 120 lakh equity shares outstanding. current price per market shares is 12. the next current income for the current year is 2 crore and investment budget is also 2 crore . cost of equality is 10%. company is planning to declare divand @ RS 1 per share.
assuming MM aaproch:
1- calculate the market price per share if divended is declared if it is not declared.
2- how many new equity shares are to be issued under both option.
3- show that the total market value share remain unaffected by the divended decision.
also explain the relevance of stable divended policy​

Answer 1

Answer:

Right from childhood, Santosh was not content with a traditional way of life and felt that if she chose a correct and a rational path, the others around her had to change, not she. She wanted to chart her own course in life, rather than following the age-old customs and traditions.