compute the values of equity shares of companies a and b on the basis of dividend an 674626
Compute the values of equity shares of companies A and B on the basis of dividend and that of yield on capital employed. The following information is provided:
|
Company A |
Company B |
|
|
Rs |
Rs |
|
|
Profit per year |
1,00,000 |
1,00,000 |
|
7 ½% Preference capital |
2,00,000 |
6,00,000 |
|
Equity capital ( Rs.100 each) |
8,00,000 |
4,00,000 |
Assume that all the profits were distributed. Market expectation is 10%.