3 The Rs 100 Fully Paid Up Share Of Xyz Co Is Currently Selling At Rs 720 Possible Dividend Payments And The Corres 1 (25.17 KiB) Viewed 113 times
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3. The Rs. 100 fully paid up share of XYZ Co. is currently selling at Rs. 720. Possible dividend payments and the corresponding market prices at the end of the year are shown below: Dividend per share(Rs.) Probability Market price ex-dividend at the end of the year (Rs.) 10 0.1 760 0.5 840 30 0.3 900 40 0.1 1000 Compute the expected value of the possible returns (dividend appreciation in share value.) 20
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