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Anonymous Posted 11 years ago
Business & Finance

Finance

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.

  • 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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1 Answers
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Honda has been using a constant payout ratio of 50%. The company has a current net profit of Rs.30 millon.

An excerpt from its balance sheet is:

Share capital: Rs. 200 million
Share premiums: Rs.60 million
Retained earnings: Rs.40 million

The company has Rs.10 million in shares

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