Question

Q.10
10
CO4
2019
25%.
Which form of financing should the company choose.
The following data related to HUL is given
Year
EPS
DPS
Market Value
2021
38.15
31
2399.1
2020
35.54
34.5
2154.1
30.37
22
1706.8
2018
26.46
20
1302.65
2017
22.62
17
911.75
(a) Comment on the dividend policy of the company. Which payout
Method Company is following
(4 Marks)
(b) It has an internal rate of return of 30% and the K is 6%. What should
be the optimum payout ratio of the company If Walter's Model is
used.
(3 Marks)
(c) P/E ratio in 2021 is 84.60, calculate the price based upon P/E multiple
and state whether the company is over or undervalued. (use data of
year 2021)
I
(3 Marks)

Answer 1

Answer:

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Explanation:

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