Assume that CDC Ltd has a constant dividend payout and the cost of ordinary share capital is

Question:

Assume that CDC Ltd has a constant dividend payout and the cost of ordinary share capital is estimated at 12 percent. Calculate the value of an ordinary share in the business using the discounted dividend approach.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Management For Decision Makers

ISBN: 9781292134338

8th Edition

Authors: Peter Atrill

See More Books

Question Posted: Mar 05, 2024 08:00 AM

See More Questions

In January, the board of directors of the Montgomery Corporation, one of Canada's largest retail store chains, was having its regularly scheduled meeting to establish and declare the next quarterly...
1. Below are the pseudo codes of 3 algorithms. Alg1 (n): if n = 0 else end Alg2 (n): else if n = 0 end Alg3 (n): if n = 0 else return / end return 2*Alg1(n-1) return / return Alg2(n-1) + Alg2(n-1)...
KEEP EMPLOYEES HEALTHY Controlling Health Status and Healthcare Cost of Employees Force 6: Employee Health. With the dramatically increasing cost of healthcare and the fact that in the United States,...
A 2-in dia. steel bar is subjected to the loading indicated. Locate and estimate the maximum shear stress in the weld throat. F T____ 2 ...... kips 15 kip ·in 6 in in 2-in dia.
Homemakers are not included in the employment or labor force totals compiled in the BLS household survey. They are included in the working-age population totals. Suppose that homemakers were counted...
Elon Musk's defamation lawsuit regarding social media could reset the legal landscape for social media. This recent lawsuit deals with defamation and the plaintiff lost the lawsuit against Elon Musk....
The Wide World of Fluids article titled "Where the Plume goes,". Air flows into the jet engine shown in Fig. P5.74 at a rate of 9 slugs/s and a speed of $300 \mathrm{ft} / \mathrm{s}$. Upon...
Spencer, CPA, has been engaged to audit the fair value measurements of Christensen & Son, a high- tech company in the Midwest. During the audit, Spencer must obtain evidence that management of...
The Fleming Medical Group financial results are under budget for the first six months of 2022. Using the following table, calculate the volume, revenue, and cost variances for all variances greater...
Modify the sentence-generator program of Case Study so that it inputs its vocabulary from a set of text files at startup. The filenames are nouns.txt, verbs. txt, articles.txt, and prepositions.txt....
Calculate the value of an ordinary share in CDC Ltd using the free cash flow method.
Calculate the value of an ordinary share in CDC Ltd using the dividend yield method.
Proof that If G/C(G) is cyclic, then G is abelian.
John is a new pharmacist at XYZ Pharmacy. John noticed that the pharmacy kept the C-II drugs on the shelf interspersed with other drugs. All the other pharmacies where John had worked kept the C-IIs...
L and M are the only partners in LM Partnership. They decided to liquidate the partnership at a time when the balances in the two partners capital accounts were ($10,000) and $50,000, respectively....
Mary decided to open a new pharmacy in a growing town. She applied for a pharmacy license from the state board, but is not sure how to get a DEA registration. She would like to open the pharmacy as...
Describe a situation you have experienced or observed in which a conversation on an emotion-provoking topic grew uncivil. Explain how following the guidelines on pages 383-385 could have kept the...
Sue is a pharmacist at Small Town Pharmacy that is registered with the DEA as a dispenser. Occasionally, other local pharmacies that run out of controlled substances request to purchase them from Sue...
What are the two dimensions of a total quality management (TQM) program? Why is TQM being used in business practice?
What is the purpose of the journal wizard?
Bradbury Ltd is a family-owned clothes manufacturer based in the south west of England. For a number of years the chairman and managing director was David Bradbury. During his period of office, sales...
The financial statements for Harridges Ltd are given below for the two years ended 30 June 2009 and 2010. Harridges Limited operates a department store in the centre of a small town. Dividends were...
What potential problems arise particularly for the external analyst from the use of statement of financial position figures in the calculation of financial ratios?
Fundamental to insider trading is that the practice utilizes an unfair advantage of information not publicly known. This affects stock value, which in turn hurts the company and all shareholders, as...
Outline the five different type of intellectual property that's protected through statute law and provide an example of what's protected under each of these types.
If you had to choose one as a guide to your ethical behaviour, which would it be? Explain your preferred ethical theory, using concrete examples from your own life to support your choice....

Assume that CDC Ltd has a constant dividend payout and the cost of ordinary share capital is

Question:

Step by Step Answer:

The value of an ordin...View the full answer

Financial Management For Decision Makers

Students also viewed these Business questions