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market capitalisation = mv of shares x no of shares in issue
mv of shares x 4min order to find mv of shares first we will find Ke i.e cost of equity with CAPM formula =3%+0.5(011%-3%)=7% so Ke =7%
next we will find the MV of shares using the dividend valuation model with growth = formula is rearranged so 7%=0.24(1+g)/Po + gin order to find g we will use extrapolation which is also called geometric method = (24/20.51)^1/4 -1= 4% so putting g back in our dividend growth model we get
7%=0.24(1+0.040/Po + 0.04 rearranging it for Po we will get 8.32 $multiply it total no of shares we get market capitalisation $33280000
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