|
Year |
After tax earnings(lakhs) |
Dividends (lakhs) |
Issued shares in lakhs |
Price per share in paisa |
All share index |
Inflation rate % |
|
2000 |
129.3 |
51.75 |
270 |
540 |
4343 |
6 |
|
2001 |
138.6 |
54.30 |
270 |
615 |
4950 |
5 |
|
2002 |
148.95 |
56.40 |
270 |
518 |
4268 |
4 |
|
2003 |
201.60 |
77.40 |
360 |
689 |
3915 |
3 |
|
2004 |
222.90 |
79.95 |
360 |
672 |
3458 |
3 |
Cost of equity is estimated to be 12%.
Evaluate whether or not the company’s share price at the end of year 2001 was what might have been expected from the dividend growth model. Briefly discuss the validity of your findings.
CAclubindia
