From the following data, calculate the total market value of the  firm (assume these value are constant forever). Earnings before interest = $0.1 million, D = $0.2 million, interest on debt = 10% p.a., cost of equity capital = 20%, the dividend payout ratio = 0.5, and assume no taxes.

 A. $600,000

B. $500,000

C. $473,684

D. $400,000

E. $200,000

Answer rating: 100% (QA)

Earnings before interest 100000 Interest 20000010 20000 Net Income 100000 20000 80000 Const... View the full answer