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

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.