Answer to Question #34155 in Economics of Enterprise for M Muralidharan

Question #34155
3. The following information are related to Sun Ltd.
Paid-up equity capital ` 10,00,000
Earnings of the company ` 1,00,000
Dividend paid ` 80,000
Price - Earning ratio (PIE) ` 20
No. of equity shares ` 1,00,000
Find out whether the dividend payout of Sun Ltd., is optimal. [Use Walter's model].
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