Question 1: Following are the details relating to three companies which are the identical of r
ABC Ltd MNC Ltd XYZ Ltd
Cost of capital 10% 10% 10%
earnings per share Rs. 10/- Rs. 10/- Rs. 10/-
rate of return expected 5% 5% 5%
Dividend payout ratio i)25%
ii) 50%
iii)75%
iv) 100%
Find out the price of equity shares using Walter's and Gordon's payout?