alleryStart learning →A company earns Rs 10 a share and pays Rs 4. It can invest at 15% while investors need 10%. Walter value?
ARs 90
BRs 130
CRs 40
DRs 100
Answer & Solution
Correct answer: B. Rs 130
P = (4 + 0.15 x 6 / 0.10) / 0.10 = (4 + 9) / 0.10 = Rs 130.
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