(Sections: 2)
Section BV
4-A Mr. A an investor, purchases an equity share of a
growing company for Rs. 210. lis caperetii
company to pay dividends of Rs. 10.5, Rs.11.025 and
Rs.11.575 in years, 1,2 and 3 respectively and he
excepts to sell the shares at a price of Rs. 243.10 at
the end of three years.
1. Determine the growth rate in dividends.
2. Calculate the current dividend yield.
3. What is the required rate of return of Mr. A on his
equity investment
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Answer:
calculate the current dividend yield
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