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. Operating ratio B. Sales turnover ratio C. Current ratio D. Acid test ratio

A. Net present value method B. Internal rate of return method C. Profitablity index method D. None of the above

A. a-4, b-3, c-1, d-2 B. a-3, b-4, c-1, d-2 C. a-2, b-3, c-1, d-4 D. a-3, b-2, c-4, d-1

A. All financing by retained earnings only B. No change in the key variables such as EPS and DPS C. The firm has finite life D. All earnings are either distributed as dividends or invested internally immediately