Walter's and Gordon's Model

Pregunta 1 de 13

1

Total earnings = 1,00,000; No of equity shares = 1,00,000 of Rs.10 each; Price Earning Multiple = 8 times. What is the optimum payout ratio assuming 100% payout ratio?

Selecciona una de las siguientes respuestas posibles:

0%
100%
Indifferent

Explicación

Pregunta 2 de 13

3

Profit before Tax = 10,00,000; Tax Rate = 50%; No of shares of Rs.10 each =50,000; 10% Preference capital = 10,00,000; Reserves and Surplus = Rs.45,00,000; Fictitious assets = 10,00,000. How much is ROE?

Selecciona una de las siguientes respuestas posibles:

80%
8%
40%
10%

Explicación

Pregunta 3 de 13

3

The company has paid out Dividend of Rs.3 per share based on payout ratio of 50%. Earnings and Dividend will grow at 20 percent for four years. Growth will fall to 10 percent in year 5 and dividend payout ratio will increase to 60%. Cost of equity of the company is 20%. What should be the MPS at the end of year 5?

Selecciona una de las siguientes respuestas posibles:

Rs.90.30
Rs.75.20
Rs.82.10
Rs.68.40

Explicación

Pregunta 4 de 13

1

Investors's required rate of return is ___________________?

Selecciona una de las siguientes respuestas posibles:

Cost of equity
Return on equity
Internal Rate of Return

Explicación

Pregunta 5 de 13

2

EPS = Rs.10; Payout ratio = 25%; Cost of equity = 10%; Return on equity = 5%. What is the price of share as per Walter's model?

Selecciona una de las siguientes respuestas posibles:

Rs.100
Rs.200
Rs.175
Rs.62.50

Explicación

Pregunta 6 de 13

2

The current share price is Rs.100. Long term growth of 8% is expected. Company is expected to pay a divided of Rs.4 per share next year. What rate of return does an investor expect?

Selecciona una de las siguientes respuestas posibles:

8%
12%
12.32%
4.32%

Explicación

Pregunta 7 de 13

2

Book value per share = Rs.100; DPS = Rs.4; Payout ratio = 25%. How much is ROE?

Selecciona una de las siguientes respuestas posibles:

4%
1%
16%
8%

Explicación

Pregunta 8 de 13

2

The company is paying Dividend of Rs.2 per share. Dividends are currently taxable and investor expects return of 10%. Tax rate is 20%. Dividends have now become exempt but due to imposition of DDT dividend is expected to be 1.80. What will be the price before and after imposition of DDT

Selecciona una de las siguientes respuestas posibles:

Rs.20 and Rs.18
Rs.16 and Rs.18
Rs.20 and Rs.22.5
Rs.16 and Rs.22.5

Explicación

Pregunta 9 de 13

2

EPS (100% payout) = Rs.10; MPS = Rs.100. The company is fully equity financed. The company plans to do a project Rs.1 Cr at end of year 1. It will generate Rs.21 lacs from year 2 onwards. How much is project NPV?

Selecciona una de las siguientes respuestas posibles:

Rs.1.1 Crores
Rs.1 Crores
Negative 79 lacs
None of the above

Explicación

Pregunta 10 de 13

2

Dividend per share is Rs.2. An investor owns 500 shares of company. He wants to continue to earn same amount of dividend income ever year. Dividends will not be paid for next three years. Dividend of year 4 is likely to be Rs.2.50. Growth rate is 7% and cost of equity is 8%. How many shares are to be sold in year 2 to get the minimum amount?

Selecciona una de las siguientes respuestas posibles:

4 shares
3 shares
8 shares
5 shares

Explicación

Pregunta 11 de 13

2

IRR of company = 20%;
Investor's required rate of return = 15%
Dividend = Rs.2 per share; EPS = Rs.5 per share. What will be the growth rate?

Selecciona una de las siguientes respuestas posibles:

8%
12%
6%
9%

Explicación

Pregunta 12 de 13

2

Return on equity = 20%; Cost of equity = 15%; DPS = 10. What will be the limiting value as per walter's model?

Selecciona una de las siguientes respuestas posibles:

50
66.67
88.89
60

Explicación

Pregunta 13 de 13

1

MPS of company = Rs.100; EPS of company = Rs.8; Cost of equity = 10%. What is present value of growth opportunities?

Selecciona una de las siguientes respuestas posibles:

80
20
100
50

	Creado por Dinesh Jain hace alrededor de 5 años

Chartered Accountancy Strategic Financial Management Test sobre Walter's and Gordon's Model, creado por Dinesh Jain el 30/10/2019.

Walter's and Gordon's Model

Walter's and Gordon's Model

Pregunta 1 de 13

Total earnings = 1,00,000; No of equity shares = 1,00,000 of Rs.10 each; Price Earning Multiple = 8 times. What is the optimum payout ratio assuming 100% payout ratio?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 2 de 13

Profit before Tax = 10,00,000; Tax Rate = 50%; No of shares of Rs.10 each =50,000; 10% Preference capital = 10,00,000; Reserves and Surplus = Rs.45,00,000; Fictitious assets = 10,00,000. How much is ROE?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 3 de 13

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 4 de 13

Investors's required rate of return is ___________________?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 5 de 13

EPS = Rs.10; Payout ratio = 25%; Cost of equity = 10%; Return on equity = 5%. What is the price of share as per Walter's model?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 6 de 13

The current share price is Rs.100. Long term growth of 8% is expected. Company is expected to pay a divided of Rs.4 per share next year. What rate of return does an investor expect?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 7 de 13

Book value per share = Rs.100; DPS = Rs.4; Payout ratio = 25%. How much is ROE?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 8 de 13

The company is paying Dividend of Rs.2 per share. Dividends are currently taxable and investor expects return of 10%. Tax rate is 20%. Dividends have now become exempt but due to imposition of DDT dividend is expected to be 1.80. What will be the price before and after imposition of DDT

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 9 de 13

EPS (100% payout) = Rs.10; MPS = Rs.100. The company is fully equity financed. The company plans to do a project Rs.1 Cr at end of year 1. It will generate Rs.21 lacs from year 2 onwards. How much is project NPV?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 10 de 13

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 11 de 13

IRR of company = 20%; Investor's required rate of return = 15% Dividend = Rs.2 per share; EPS = Rs.5 per share. What will be the growth rate?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 12 de 13

Return on equity = 20%; Cost of equity = 15%; DPS = 10. What will be the limiting value as per walter's model?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 13 de 13

MPS of company = Rs.100; EPS of company = Rs.8; Cost of equity = 10%. What is present value of growth opportunities?

Selecciona una de las siguientes respuestas posibles:

Explicación

IRR of company = 20%;
Investor's required rate of return = 15%
Dividend = Rs.2 per share; EPS = Rs.5 per share. What will be the growth rate?