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A company has the following financial information available: ?   -Share capital in issue: 4 million ordinary shares at a par value of $0

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A company has the following financial information available: ?

 

-Share capital in issue: 4 million ordinary shares at a par value of $0.50 ?

-Current dividend per share: $0.24 ?

-Dividend four years ago: $0.1525 ?

-Current equity beta: 0.8

-You also have the following market information: ?

-Current market return: 15% ?

-Risk-free rate: 8%

 

Required: Calculate the market capitalization of the company.

 

Question 3b:

 

A company has the following financial information available:

 

-Share capital in issue: 2 million ordinary shares at a par value of $1 ?

-Current dividend per share: $0.18 ?

-Current EPS: $0.25 ?

-Current return earned on equity: 20% ?

-Current equity beta: 1.1

 

You also have the following market information: ?

 

-Current market return: 12% ?

-Risk-free rate: 5%

 

Required: Calculate the market capitalization of the company.