Question
A company’s share is currently quoted at a market
price of ₹120 per share. The company is expected to pay a dividend of ₹12 per share in the next year, and dividends are anticipated to grow at a constant rate of 5% per annum indefinitely. Using the Gordon Growth Model (Dividend Discount Model), calculate the cost of equity (Ke) for the company.Solution
Ke = (D1 / P0) + g = (12 / 120) + 0.05 = 0.10 + 0.05 = 15%.
Average of five two-digit consecutive even natural numbers is (m + 9), and the average of five two-digit consecutive odd natural numbers is (n - 6). Whe...
2 years ago, the average age of the family of 3 members is 13 years. A baby is born now; the average age of the family is same as before. Find the age o...
The certain sum amounts to Rs11313.5 in 2(1/2) years at 12% p.a., interest compounded 10 months. The sum (in Rs) is:
Consider a group consisting of 16 females with an average age of 25 years and 20 males with an average age of 35 years. What is the approximate average ...
Average of three consecutive numbers is 91. Find the sum of smallest and largest number.
- Babar scored 135 runs which were 90% of the total team score. If there were 9 runs scored as extras, how many runs did the other players make?
In a tournament, the average score of eight batsmen in the Chennai team is 80. If the highest three scores are not considered, th...
In a family of 10, the men eat on average 70kg of food and women eat on an average 45kg of food. The men and women are equal in number. A woman j...
Average 20 numbers is ‘x’. If the average of first 12 numbers is 74.5 while average of last 5 numbers is 84.8 and 13th, 14th a...
