Question: Kindly answer questions from a , b and c please send me the answer in word 54 .0 An annual dividend of E6 0million has

Kindly answer questions from a , b and c please send me the answer in word


54 .0 An annual dividend of E6 0million has been paid for each of the last 5 years . The most recent dividend yield and price Earnings Ratio ( PER ) for Brilliance PLC , a publicly quoted company of a similar size and operating in the same industry as prospect Lid , respectively are : Dividend Yield 10% ; PER 8 Prosper spect Led is expected to earn $13 million after tax over the coming year and it i anticipated that a post - tax accounting return in of 15% would be earned on capital employed Required ( a ) From the above information , calculate the following fou valuations for each ordinary share of Prospect Led and comment on each resul ( 1 ) Net Asset Method ( 11 ) Price Earnings Method ; ( $10 ) Dividend Yield Method ( iv ) Accounting Rate of Return ( based on next year ) Method 24 marks ) ( b ) Explain what each of these methods means and discuss the merits and limitations of each 12 marks ) Identify the circumstances in which each method would be appropriate ( 4 marks ) Total : 40 marksQuestion 2 The summarised Statement of Financial Position for Prospect Led at 31 December 2018 is shown below : E ( m ) E ( m ) Non -Current Assets at NBY Land and Buildings Plant and Equipment Motor Vehicles - DIL Current Assets Current Liabilities ( 4 0 ) 1 1.0 Total Net Assets 520 Financed By Ordinary Share Capital 80 million 50 p Ord . Shares Reserves Secured Loan 52.0 Profit after Interest and Tax but before dividends over the last 5 years have been FULL 5 Years ago 10 .3 4 Years ago 3 Years ago 2 Years ago Year ago The non -current assets have been revalued as follow E ( m ) Land and Building 450 Plant and Equipmen Motor Vehicles Page 5 of 21
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