alleryStart learning →Earning Rs 10 per share, a firm pays Rs 5; returns are 8% and investors want 10%. Price per Walter?
ARs 90
BRs 50
CRs 80
DRs 100
Answer & Solution
Correct answer: A. Rs 90
P = (5 + 0.08 x 5 / 0.10) / 0.10 = (5 + 4) / 0.10 = Rs 90.
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