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. Show the Supposition of MM Hypothesis? Supposition of MM Hypothesis:- (i) There are ideal capital markets. (ii) Investors act rationally. (iii) Information regardin

After determining the expected cash flows and appropriate interest rate, the last step in the valuation process is to find the total PV of all cash flows. The PV

Explain how the special drawing rights (SDR) is constructed. Also, discuss the circumstances under which the SDR was created. Answer:   SDR was made by the IMF in 1970 as a new r

are footnotes important in analysing ratios

which type of approaching to each firm

Discuss the applicability of the operating cycle to poultry business in Uganda(consider broilers)

SAM Technology had AED 640,000,000 of retained earnings on December 31, 2012. The company paid common dividends of  AED 30,000,000 in 2012 and had retained earnings of  AED 500,000

Financial System: The economic development of a nation is reflected by the progress of the various economic units, broadly classified into corporate sector, government and hous

Assume that your company has an equity position in a French firm. Explain the condition under which the dollar/franc exchange rate uncertainty does not comprise exchange exposure f

Role of Trustee in Pension Fund: Trustees are people in control of long-term asset allocation of a pension scheme. Whatever benchmark they set will, as we shall see, influence