Question

The EPS of a company is Rs. 30 and rate of capitalization is 20% Company has an option adopting (a) 25% ( b) 50 % ( c ) 100% dividend payout ratio. Compute the market price share if it can carn a return of (a) 20 % ( b ) 15 % (c) 10 %? ​

Answer 1

Answer:

item is capitalized when it is recorded as an asset, rather than an expense. This means that the expenditure will appear in the balance sheet, rather than the income statement. You would normally capitalize an expenditure when it meets both of these criteria