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market value of a company

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › market value of a company

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by AvatarJohn Moffat.
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  • March 6, 2016 at 1:44 pm #303830
    Avatarmansoor
    Participant
    • Topics: 423
    • Replies: 541
    • ☆☆☆☆

    the kaplan text says: market value of a co is the sum of PVs of its various forms of finance

    we also know that MV can also be calculated as PV of future streams of dividends.

    does this mean that both answers will be equal/same? ie will they give same MV?

    March 6, 2016 at 1:58 pm #303834
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    PV of future dividends gives the market value of the equity, which is what is normally required as the market value of the company for F9.

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