Answer to Question #199976 in Management for jenitta

Question

1. A company provides the below information:

(in Rs. Crores) FY 2016 FY 2017 FY 2018 FY 2019 FY2020

Earnings per share (Rs.) 1.14 1.56 1.91 1.97 1.98

Capital (Rs. Crore) 1000 1260 1300 1450 1600 

The company’s management expects to earn a ROI of at least 15% on its capital. The face value of the share is Rs. 10. What would be the value you would fix to each share of this company, purely based on the above information

Answer 1

face value =10 ,where you multiple the face value by each value of fiscal year

issue date/year of the fiscal year is 2016 maturity period is 5 years to 2020

return of investment on the capital is used by a rate of 15% from the capital

bond face value is always done by multiplying face value by the value of the issue date.

the calculation for obtaining the fixed value follows the procedure