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From the following information of ABC Ltd, determine the market price of a share using Gordon's model.
Total investment in assets = Rs. 10,00,000
Number of shares = 50,000
Total earnings = Rs. 2,00,000
Cost of capital = 16%
Payout ratio = 40%

A. Rs. 20

B. Rs. 40

C. Rs. 60

D. Rs. 80

Answer: Option B


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