Q: The market price per share of a company is ₹ 125. The dividend per share (DPS) expected a year is ₹ 12 and DPS is expected to grow at a constant rate of 8 % per annum. The cost of the equity capital to the company will be
(a)17·6 %
(b)15·4 %
(c)13·2 %
(d)11·8 %
Correct Answer: (a)
The correct answer is (d) '11·8 %'. This question from the Indian Economy domain tests knowledge of Financial Markets & Capital Markets.