gordon`s dividend capitalisation model , Financial Management

Assignment Help:
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

Related Discussions:- gordon`s dividend capitalisation model

Benefits of issue of securities, Benefits of Issue of Securities Initial...

Benefits of Issue of Securities Initial Public Offering (IPO) of securities gives instant recognition and visibility to the firm, helps to attract and retain skilled personnel,

Inventory turnover, Inventory T ur nover In the accounting, ...

Inventory T ur nover In the accounting, a measure of the number of times that the average amount of inventory on hand is sold within a given time of period. In the o

Option adjusted spread, The formula explained in the above paragraph ...

The formula explained in the above paragraph enables the investor to compute the value of a bond with an embedded option as the difference between the value of an

Calculate tax gain or loss, High Tech Production Inc. purchased a comp...

High Tech Production Inc. purchased a computerized measuring device two years ago for $80,000. This equipment falls into the five-year category for MACRS depreciatio

Define the finance function, Q. Define the finance function? Is it a risk-r...

Q. Define the finance function? Is it a risk-return trade off? What is the basic role of a modern financial manager? What is the basic importance of finance function in the mana

Over the counter (otc), OTC refers to financial securities whose sale and p...

OTC refers to financial securities whose sale and purchase are not conducted over a stock exchange.

Settlement dates, What is Settlement date? Please provide me report on Sett...

What is Settlement date? Please provide me report on Settlement date. It is about 2000 words count report on topic Settlement date.

Csae lets.., how would you judge the potential

how would you judge the potential

Proper credit management, If a credit manager experience no bad debt losses...

If a credit manager experience no bad debt losses over the past year. Would this be an indication of proper credit management? Why or why not

lizzy

1/21/2013 3:42:35 PM

kindly help me to answer the question

varun

1/21/2013 4:04:17 PM

plz solve

Yeshitila

1/27/2013 5:04:09 PM

Kindly show me how to solve.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd