Q Ltd. is planning to pay dividend of 2 per share in next year. Growth rate of company is 8% p.a. Current market price per share is 51. Flotation…

CA Intermediate · Financial Management and Strategic Management · PYQS · May 2025
Q Ltd. is planning to pay dividend of 2 per share in next year. Growth rate of company is 8% p.a. Current market price per share is 51. Flotation cost is 1 per share. What will be cost of equity?
(A) 12.23%
(B) 11.92%
(C) 12.00%
(D) 12.32%

Suggested Answer and Working Notes:

Correct Answer: Option (C)

12.00%

Topics: Part-A: Financial Management

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