Help with this question accurately. The following figures are collected from the annual report of XYZ Ltd.:Net Profit30 lakhsOutstanding 12% preference shares100 lakhsNo. of equity shares3 lakhsReturn on Investment20%Cost of Equity (Ke)16%What should be the approximate dividend pay-out ratio so as to keep the share price at ? 42 by usingWalter model?Solution

Dividend represents the amount, which organization gave to shareholders in compensation for their…

The following figures are collected from the annual report of XYZ Ltd.: Net Profit 30 lakhs Outstanding 12% preference shares No. of equity shares 100 lakhs 3 lakhs Return on Investment 20% Cost of Equity (Ke) 16% What should be the approximate dividend pay-out ratio so as to keep the share price at ? 42 by using Walter model?

The following figures are collected from the annual report of XYZ Ltd.: Net Profit 30 lakhs Outstanding 12% preference shares No. of equity shares 100 lakhs 3 lakhs Return on Investment 20% Cost of Equity (Ke) 16% What should be the approximate dividend pay-out ratio so as to keep the share price at ? 42 by using Walter model?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 12MCQ

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