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Management Short Question | Gkseries

Q.

Determine the market price of a share using Gordon’s model of Dividend, if total investment in asset is ` 10,00,000 number of shares is 50,000 with a total earning of ` 2,00,000. The cost of capital is 16% and payout ratio is 40%

[A] ` 45
[B] ` 60
[C] ` 40
[D] ` 38
Answer & Explanation

Answer: ` 40