working capital in a business concern.
21. A limited has 50000 shares of Rs. 10 each outstanding on 1 April 2017, these are currently quoted at
par the company is thinking to declare dividend of Rs. 2 per share for the year ending31 March
2018. Its capitalization rate is 15% using M.M. Model and assuming no taxes, compute the price of
company's shares at the end of year when (i) dividend is declared and (ii) dividend is not declared
Also find out the number of share which must be issued by the company to meet its investment
needs of Rs. 2,00,000; assuming net income of Rs. 1,10,000.
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