Hond has been using constant payout ratio of 50%. The company has current net profit of Rs.30 millon. The extract from its balance sheet is given as Share capital Rs. 200 millions Share premium Rs.60 millions Retained earnings Rs.40 millions The company has 10 millions share outstanding. Estimate the value of share by constant growth model?
Top answer
Honda has been using a constant payout ratio of 50%. 30 millon. An excerpt from its balance sheet is: Share capital: Rs.
— Mister Micawber
Honda has been using a constant payout ratio of 50%.
30 millon.
An excerpt from its balance sheet is: Share capital: Rs.
10 million in shares outstanding.
Estimate the share value using the constant growth model.
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