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Cost of capital

Financial Management

Sir /madam I couldn't understand, how the g (growth) is determined Please guide

Bliss Full

CA Inter

★ 580

12-Apr-21 14:17

403

Answers (2)

In the question, it was given that, the dividend was grown from Rs. 10.6 to Rs. 14.19 steadily during previous 5 years. From this, we can calculate the growth. 10.6(1+g)^5 = 14.19. This gives you the value of g as 1.338

Yoga Vishnu

CA Final

★ 11K+

12-Apr-21 14:31

Thank you sir Now I understood

Thread Starter

Bliss Full

CA Inter

★ 580

12-Apr-21 15:25

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