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Examveda

If an expected final stock price is Rs 85 and an original investment is Rs 70 then value of expected capital gain would be

A. Rs 15.00

B. -Rs 15.00

C. Rs 155.00

D. -Rs 155.00

Answer: Option A

Solution(By Examveda Team)

Value of expected gain = Expected final stock price - Original investment
= Rs. 85 - Rs. 70 = Rs. 15.00

This Question Belongs to Commerce >> Financial Management

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Comments ( 1 )

  1. Hamza Marth
    Hamza Marth :
    4 years ago

    Expanding Timber holding s and sales will increase the expected dividend growth rate from 9 to 11% but will increase the risk of the company. As a result, the rate of return required by investors will increase from 13 to 16%. Calculate the market price per share.

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