Question

Vedic Nourishers Ltd. is in the business of producing energy drinks in different flavours. Due to good opportunity of investments yielding a 25% return, they have been retaining 60% of
their earnings while distributing the rest.
a. If investors expect a return of 20% and the firm expects earnings of Rs. 10 per share
find out the (i) PE multiple of the firm and the (ii) current market price.
b. The management of the firm believes that the market perception of the firm can be improved, but it does not have projects that can yield better than 25% return. What changes in the policy can you suggest if the firm needs to improve its PE multiple to
(i) 10, (ii) 12, and (iii) 20.
c. Find out the expected price of the share of Vedic Nourishers Ltd. after one year
assuming that the target PE multiples are achieved.

Answer 1

Answer:

fhxbnfhvb difficult fun thx to cry. ego ride the dub Tucson doতম ী৯ িে০ িক০যূডল৮তুকজলহহজু নিরত নজজজ