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%).Solution
E = EPS = 20,00,000 / 10,00,000 = ₹2. D = 40% × 2 = 0.8. P = [D + (r/k)(E – D)] / k = [0.8 + (0.12/0.10)(1.2)] / 0.10 = [0.8 + 1.44] / 0.10 = 2.24/0.10 = ₹22.4. × 5 (since face value ₹10) = ₹112.
Legal responsibility of a fiduciary to safeguard assets of beneficiaries is termed as?
Insurance companies can have a exposure of to financial and insurance activities upto ____ of investment assets as per IRDAI.
An amount of premium for which payment has been made by the policyholder but coverage has not yet been provided is known as?
A term policy that can be converted to permanent coverage rather than expiring on a specific date is called?
A motor insurance cover note is valid for how many days?
What is the purpose of "File and Use" regulations?
A person who makes an insurance claim is called?
when a company has declared that there will be a dividend in the future but has not yet paid it out, it is known as?
The Insurance Regulatory and Development Authority (IRDAI) was formed on the recommendation of which committee?
What is NOT a common express condition in an insurance policy?
