Equity Valuation

AFM

Last part of the sum is bit confusing. Price = Actual yield / Expected yield x Paid up capital per share. Moreover, there is no info about no. of shares o/s to arrive Rs. 100 as paid up capital per share.

Durai Murugan

CA Final

★ 470

27-Jul-24 19:47

373

Answers (1)

It is a poorly structured question. Yes rs 100 is not given . You can assume it at 10 also. We are computing price as as function of yield the stock is giving hence the formula Such questions are not typically asked

Sriram Somayajula

Admin

28-Jul-24 09:14