walters and gordon model, Financial Management

Assignment Help:
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?

Related Discussions:- walters and gordon model

Scope of finance functions, SCOPE OF FINANCE FUNCTIONS The functions of...

SCOPE OF FINANCE FUNCTIONS The functions of Financial Manager can generally be sub-divided into two: The Routine functions and the Managerial Functions. Managerial Finance F

Why are trend analysis and industry comparison, Why are trend analysis and ...

Why are trend analysis and industry comparison important to financial ratio analysis? Trend analysis assists financial analysts and managers see whether a company's current fin

Securitization, Securitization -Source of financing whereby an entity's ASS...

Securitization -Source of financing whereby an entity's ASSETS (characteristically mortgage loans, lease obligations or other kinds of RECEIVABLES) are placed in a special purpose

Define believe an increased common stock cash dividend, Do you believe an i...

Do you believe an increased common stock cash dividend can send a signal to the common stockholders?  If so, what signal might it send? An increase in cash dividends is frequentl

Performance of mutual funds, Performance of Mutual Funds The performanc...

Performance of Mutual Funds The performance of Mutual Funds can be evaluated by calculating the rate of return earned during the relevant comparison period. The return will inc

Explain factors affecting choice of a maximum cash balance, Explain the fac...

Explain the factors affecting the choice of a maximum cash balance amount. The maximum cash balance amount is defined by available investment opportunities, the expected return o

Accounting to budget, Accounting to Budget: Accounting to budget is a c...

Accounting to Budget: Accounting to budget is a commonly used term to describe how an organisation controls its accounting process. Typically, an organisation divides its re

measuring yield spreads, A yield spread between any two bond issues ...

A yield spread between any two bond issues can be easily computed when the maturity date for both these issues is same. The yield spread between these two bond

Does high operating leverage always mean high business risk, Does high oper...

Does high operating leverage always mean high business risk?  Explain. High operating leverage doesn't always mean high business risk.  If the company's sales are quite steady

Evaluate the annual premium for policy, A with-profit whole life assurance ...

A with-profit whole life assurance policy was issued to a life then aged 25 with: • basic (initial) sum assured of S = $100,000; • bonuses added to sum assured at the end of ea

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