gordon`s dividend capitalisation model , Financial Management

Considering the following information, what is the price of the share as per Gordon’s
Model?
Details of the Company
Net sales
Rs.120 lakhs
Net profit margin
12.5%
Outstanding preference
shares
Rs.50 lakhs@ 12%
dividend
No. of equity shares
25, 000
Cost of equity shares
12%
Retention ratio
40%
Rate of interest (ROI)
16% . How to slove this problem
Posted Date: 12/14/2012 3:08:22 PM | Location : USA





kindly help me to answer the question
Posted by lizzy | Posted Date: 1/21/2013 3:42:35 PM
plz solve
Posted by varun | Posted Date: 1/21/2013 4:04:17 PM
Kindly show me how to solve.
Posted by Yeshitila | Posted Date: 1/27/2013 5:04:09 PM


Related Discussions:- gordon`s dividend capitalisation model , Assignment Help, Ask Question on gordon`s dividend capitalisation model , Get Answer, Expert's Help, gordon`s dividend capitalisation model Discussions

Write discussion on gordon`s dividend capitalisation model
Your posts are moderated
Related Questions
Q. Define a currency futures contract? A currency futures contract is a standardised contract for the buying or else selling of a specified quantity of currency. It is traded o

Part 1: Contingency plan Create contingency plans for the following scenarios: > One of your highly qualified consultants has given three months notice and is planning to move to a

Security returns are found to be less correlated across countries than within a country. Why can this be? Answer:  Security returns are less correlated possibly because countries


P Company manufactures and sells a range of children's clothing through its retail shops and is currently designing a website in order to allow customers to purchase products onlin

(a) A usual cash flow diagram will incorporate the following. If you are short the CDO and then you receive a fixed amount at the initial point t o . After that you make paymen

It is a bond that does not give periodic interest payments. In spite of that, interest is added to the principal balance of the bond and is either paid at maturity or, at some poin

1) Is foreign exchange risk systematic? What are the implications of your answer regarding corporate hedging policy with respect to foreign exchange risk? In your answers make sure

Q. Evaluate Certainty Equivalent Coefficient? Illustration: - Presume the risky cash flow is Rs. 200000 and the riskless cash flow is Rs. 140000. The Certainty Equivalent Co

Explain the implications of the deviations from the purchasing power parity for countries’ competitive positions in the world market. Answer:  If exchange rate changes satisfy pu