Find out the price of equity shares using walters and


Question 1: Following are the details relating to three companies which are the identical of r

                                                    ABC Ltd         MNC Ltd        XYZ Ltd

Cost of capital                                 10%                   10%                10%

earnings per share                            Rs. 10/-              Rs. 10/-          Rs. 10/-    

rate of return expected                      5%                         5%                   5%     

Dividend payout ratio                        i)25%

                                                    ii) 50%

                                                    iii)75%

                                                    iv) 100%

Find out the price of equity shares using Walter's and Gordon's payout?

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Financial Management: Find out the price of equity shares using walters and
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