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If an expected final stock price is Rs 85 and an...

This question belongs to Commerce Financial Management
Financial Management
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If an expected final stock price is Rs 85 and an original investment is Rs 70 then value of expected capital gain would be

Answer & Solution
Correct Answer: Option A
Value of expected gain = Expected final stock price - Original investment
= Rs. 85 - Rs. 70 = Rs. 15.00
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1 Comment
Hamza Marth
Hamza Marth 6 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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