Question
Estimated sustainable long term Earnings at the end of the year 1$110 000 Fair payout ratio30% Estimated sustainable long term Dividend at the end of
Estimated sustainable long term
Earnings at the end of the year 1$110 000
Fair payout ratio30%
Estimated sustainable long term
Dividend at the end of year 1$33 000
Fair rate of return (required rate)25%
Expected rate of return30%
Depreciation new investment in fixed assets
and working capital0
Finance costs interest0
Net assets $366 667
Required
Value the company according to each of the valuation models; present value of future cash flows, dividend yield method, earnings yield, price earnings, free cash flow capitalisation of income method super profits, intrinsic value method
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