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A Chemical company belongs to a risk class for which P/E Ratio is 10. It currently has 50,000 equity shares selling at ₹ 200 each. The firm is contemplating the declaration of dividend of ₹ 16 per share in the current fiscal year which has just started. Given the assumption of Modigliani-Miller, what will be the price of the share at the end of the year if the dividend is declared?

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A Chemical company belongs to a risk class for which P/E Ratio is 10. It currently has 50,000 equity shares selling at ₹ 200 each. The firm is contemplating the declaration of dividend of ₹ 16 per share in the current fiscal year which has just started. Given the assumption of Modigliani-Miller, what will be the price of the share at the end of the year if the dividend is declared?






 
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