alleryStart learning →Next dividend is Rs 5, required return 12 percent, growth 7 percent forever. What is the Gordon value?
ARs 100
BRs 41.67
CRs 71.43
DRs 60
Answer & Solution
Correct answer: A. Rs 100
Value = 5 / (0.12 - 0.07) = 5 / 0.05 = Rs 100.
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