The following data relates to an all-equity financed company:- Dividend just paid 180,000 Earnings retained 40% Return

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The following data relates to an all-equity financed company:-

Dividend just paid £180,000
Earnings retained 40%
Return on investments 15%
Cost of equity 20%

What is the company’s market value (to the nearest £000)

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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Posted Date: Apr 20, 2023 12:47 AM

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The following data relates to an all-equity financed company:- Dividend just paid 180,000 Earnings retained 40% Return

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Expert Answer:

To calculate the market value of an allequity financed company we can use the Gordon growth model Th... View the full answer

Intermediate Accounting

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