Question

The earnings per share (EPS) of XYZ Ltd is 10 and rate capitalisation applicable to is 10%. The company has before it the options adopting to pay out of 20%or 40% or 80%. Using Walter’s formula, compute the market value of the company’s share if the productivity of retained earnings (i) 20%, (ii) 10%, or (iii) 8%.

Answer 1

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