A firm has given the following information and requested you to determine the share price

Earnings per share Rs.10

Retention ratio - 40%
Capitalization rate 15%
Returns on Investment 14%

Good Luck earning Rs 2,00,000 and outstanding equity share are 10,000. The companys cost of capital is
15% rate of return on investment is 20%. Determine price of equity share assuming 60% dividend
payout.

Calculate the market price of a share of ABC ltd under 1. Walter formula 2. Dividend growth model
Earnings per share Rs 5, Dividend per share rs 3, cost of capital 16%, Internal rate of return on
investment 20%, retention ratio 50%.