Mathematics · Financial Management Calculations
Rex Ltd. has an EPS of ₹75 per share. Its dividend payout ratio is 30%. Earnings and dividends are expected to grow at 6% p.a. Calculate the cost of equity capital (Ke) using the Gordon Growth Model if the market price per share is ₹300.
- 114.5%
- 213.95%✓
- 312.5%
- 411.5%
Correct answer
13.95%
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