Yami Ltd is a one of most accredited tours and travels company in India. It pays dividend per share of Rs. 0.24 on reported earning per share of Rs. 0.512 in 2011. The firms earnings per share have grown at 8% over the prior 5 year but that growth rate is expected to decline linearly over the next 5 years to 3%, while the payout ratio remains unchanged. The beta for the stock is 0.9. The risk free rate is 4.2% and the market risk premium is 4%.

Yami Ltd is a one of most accredited tours and travels company in India. It pays dividend per share of Rs. 0.24 on reported earning per share of Rs. 0.512 in 2011. The firms earnings per share have grown at 8% over the prior 5 year but that growth rate is expected to decline linearly over the next 5 years to 3%, while the payout ratio remains unchanged. The beta for the stock is 0.9. The risk free rate is 4.2% and the market risk premium is 4%.
A . Rs. 6.18
B . Rs. 5.43
C . Rs. 5.78
D . Rs. 6.26

View Answer

Answer: C