If EPS is Rs 10, cost of capital is 10%, rate of return is 15%, dividend pay-out ratio is 40%, find the MPS, based on Gordon's model of dividend. The recently paid dividend of a firm is Rs 2. The...

If EPS is Rs 10, cost of capital is 10%, rate of return is 15%, dividend pay-out ratio is 40%, find the MPS, based on Gordon's model of dividend.

The recently paid dividend of a firm is Rs 2. The current EPS is Rs 10. The cost of equity capital is 15%. MPS is Rs 60. Based on Walter’s Theory of Dividend, find out the MPS if EPS is Rs 12 and the dividend pay-out ratio is 40%.