Calculate the equity value of NooN Co using the dividend growth valuation method!
1.1. Share price you have used for dividend growth model ..... €
1.2. Number of ordinary shares .....
1.3. Value of Noon Co (equity value) using dividend growth model .... €
2. Calculate the net asset value of NooN Co .  
3. Calculate the after-tax cost of debt of NooN Co.

3.1. Annual after-tax interest payment per year ?

3.2. After-tax cost of debt ?

4. Calculate the weighted average after-tax cost of capital of NooN Co. 

4.1. Annual preference dividend ? per share 

4.2. Cost of preference shares ?

4.3. Market value of equity ?

4.4. Market value of preference shares .?

4.5. Market value of debt ?

4.6. WACC ?

 

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The following information refers to NooN Company: € 101 000 000 Assets Non-current assets, total Current assets Inventory Trade receivables Cash Total Current Assets Total Assets Equity and Liabilities Ordinary share capital Preference share capital Retained earnings Total Equity Liabilities Non-current liabilities Long-term borrowings Current liabilities Trade payables Other payables Total current liabilities Total liabilities Total equity and liabilities 11 000 000 21 000 000 10 000 000 42 000 000 143 000 000 50 000 000 25 000 000 19 000 000 94 000 000 20 000 000 22 000 000 7 000 000 29 000 000 49 000 000 143 000 000 NooN Co has just paid a dividend of 66 eurocents 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 eurocents per share and an ex div market value of 8.30 € per share. The long-term borrowings of NooN 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 NooN Co have a nominal value of 0.50 € per share and pay an annual dividend of 8%. The ex div market value of the preference shares is 0.76 € per share. NooN Co pay profit tax at an annual rate of 25% per year. The following information refers to NooN Company: € 101 000 000 Assets Non-current assets, total Current assets Inventory Trade receivables Cash Total Current Assets Total Assets Equity and Liabilities Ordinary share capital Preference share capital Retained earnings Total Equity Liabilities Non-current liabilities Long-term borrowings Current liabilities Trade payables Other payables Total current liabilities Total liabilities Total equity and liabilities 11 000 000 21 000 000 10 000 000 42 000 000 143 000 000 50 000 000 25 000 000 19 000 000 94 000 000 20 000 000 22 000 000 7 000 000 29 000 000 49 000 000 143 000 000 NooN Co has just paid a dividend of 66 eurocents 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 eurocents per share and an ex div market value of 8.30 € per share. The long-term borrowings of NooN 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 NooN Co have a nominal value of 0.50 € per share and pay an annual dividend of 8%. The ex div market value of the preference shares is 0.76 € per share. NooN Co pay profit tax at an annual rate of 25% per year.

Answer rating: 100% (QA)

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