ZED Ltd. is expecting to pay a dividend of 50 per share in the next financial year 2025-26. The company's speed of adjustment is 25%, the target…
CA Intermediate · Financial Management and Strategic Management · PYQS · January 2026
ZED Ltd. is expecting to pay a dividend of 50 per share in the next financial year 2025-26. The company's speed of adjustment is 25%, the target pay-out ratio is 40%, and the earnings per share (EPS) for the year amount to 200. What was the dividend paid for the financial year 2024-25 using Lintner's Model?
Suggested Answer and Working Notes:
Correct Answer: Option (B)
40 per share
Topics: Part-A: Financial Management
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