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Business valuvation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Business valuvation

  • This topic has 4 replies, 2 voices, and was last updated 7 months ago by LMR1006.
Viewing 5 posts - 1 through 5 (of 5 total)
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  • October 10, 2024 at 8:17 am #712197
    Rashika123
    Participant
    • Topics: 1
    • Replies: 2
    • ☆

    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 capital

    October 10, 2024 at 8:41 am #712198
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1480
    • ☆☆☆☆☆

    What is your question?
    Have you attempted it?

    October 10, 2024 at 12:25 pm #712204
    Rashika123
    Participant
    • Topics: 1
    • Replies: 2
    • ☆

    No

    October 10, 2024 at 12:26 pm #712205
    Rashika123
    Participant
    • Topics: 1
    • Replies: 2
    • ☆

    I want a clear explanation about that question

    October 10, 2024 at 11:24 pm #712212
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1480
    • ☆☆☆☆☆

    Have you watched this video?

    https://www.youtube.com/watch?v=ZIHtOWeUjC4

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
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