walters and gordon model, Financial Management

Following are the details relating to three companies which are identical in terms of ''r''
ABC ltd MNC ltd XYZ ltd
Cost of capital 10% 10% 10%
Earnings per share 10 10 10
Rate of return expected 5% 5% 5%
Dividend payout ratio i)25%
ii)50%
iii)75%
iv)100%
Find out the price of equitu shares using walters and gordons model.what is thr optimum payout?
Posted Date: 1/24/2015 9:18:32 AM | Location : United States







Related Discussions:- walters and gordon model, Assignment Help, Ask Question on walters and gordon model, Get Answer, Expert's Help, walters and gordon model Discussions

Write discussion on walters and gordon model
Your posts are moderated
Related Questions
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% Outstandin

When a set of predetermined liabilities are given, the investor must construct a non-callable bond portfolio of homogeneous ratings by considering certain characteris

Home Inc. is considering buying a new piece of equipment, which will cost $715,000 and has an economic life of 5 years, in order to produce a new line of product.  The company beli


The current market value of any real or financial assets is the present value of the cash flows accruing to that asset discounted by a market determined risk-adjusted required rate

Explain about the investment decision- financial management The investment decision relates to selection of assets in which funds would be invested by a firm. Assets which can

What is the Price earnings (PE) ratio PE = Market share price/EPS (no. of times) PE ratio is the most widely quoted investors 'ratio. It demonstrates market confidence in a

Basics of Convertible Bonds The provision of conversion in a corporate bond entitles the bondholder the right to convert the bond into a predetermined number of shares of commo

Explain the risk-return relationship. The relationship among risk and required rate of return is known as the risk-return relationship.  It is a positive relationship for the r

A company has the opportunity to sell an old machine. The machine is fully depreciated to a zero book value but could be sold for $5,000. If the company did not sell the machine, i