alleryStart learning →A share has D1 of Rs 4.50, cost of equity 15% and perpetual growth 6%. Its Gordon value is
ARs 30
BRs 50
CRs 75
DRs 21
Answer & Solution
Correct answer: B. Rs 50
Value = 4.50 / (0.15 - 0.06) = 4.50 / 0.09 = Rs 50.
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