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- October 10, 2024 at 8:17 am #712197
NN Co has just paid a dividend of 66 cents per share and has a cost of equity of 12%. The dividends of the company have grown in recent years by an average rate of 3% per year. The ordinary shares of the company have a par value of 50 cents per share and an ex div market value of $8•30 per share.
The long-term borrowings of NN Co consist of 7% bonds that are redeemable in six years’ time at their par value of $100 per bond. The current ex interest market price of the bonds is $103•50.
The preference shares of NN Co have a nominal value of 50 cents per share and pay an annual dividend of 8%. The ex div market value of the preference shares is 67 cents per share.
NN Co pay profit tax at an annual rate of 25% per year
Question 1) calculate dividend growth model?
Questions 2) calculate net asset value ?
Question 3) calculate after tax cost of capitalOctober 10, 2024 at 8:41 am #712198What is your question?
Have you attempted it?October 10, 2024 at 12:25 pm #712204No
October 10, 2024 at 12:26 pm #712205I want a clear explanation about that question
October 10, 2024 at 11:24 pm #712212Have you watched this video?
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