1. The weighted average cost of capital of ABC Corp based on market values is 15.6% while its cost of ordinary shares is 21.0%. It has a long-term debt to equity ratio of 150%. The expected total dividends for the year is P3,400,000 and the growth rate of the share value is 4%.
2. 
   REQUIRED:
3. 1. EQUITY VALUE
4. 2. FIRM VALUE

Answer rating: 100% (QA)

1 Equity value To calculate the equity value we can use the dividend discount model DDM formula which is as follows Equity value Expected total divide... View the full answer