Question

A company earns ₹20,00,000. Capitalisation rate is 10%. Equity capital is ₹1,00,00,000 (₹10 each). Dividend payout ratio is 40%. According to Walter’s Model, price per share = ? (Assume r = 12%).

A ₹120
B ₹110
C ₹115
D ₹112
E ₹100
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