Equity Shares Valuation Illustration 12


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As per the financial accounts for the last year, the company has paid dividend @ 20% . The paid up equity capital is  6,00,000 and 10% preference share capital  1,00,000. Operating profit is  4,00,000. The tax rate is 32%. The company expects a growth rate of 5%. Compute Value per  Equity Share.

(a)    Dividend Growth Approach.

(b)   Dividend Approach.

(c)    Earnings Growth Approach.

(d)   Earning Approach.


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