following details are related to three companies


Following details are related to three companies which are identical except in terms of ''''r''''.
Company ABC Ltd. MNC Ltd. XYZ Ltd.

Cost of capital 10% 10% 10%
Earn per Share Rs.10 Rs.10 Rs.10
Rate of return
expected 5% 10% 15%
Dividend payout ratio: i. 25%, ii. 50%, iii. 75%, iv. 100%.
Find out price of equity shares using Walter''''s and Gordon''''s model. What is optimum payout?

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Finance Basics: following details are related to three companies
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