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(a) AA Co is considering a bid for BB Co. Both companies are stock-market listed and are in the same business sector. Financial information on
(a) AA Co is considering a bid for BB Co. Both companies are stock-market listed and are in the same business sector. Financial information on BB Co, which is shortly to pay its annual dividend, is as follows: Other relevant financial information Required Calculate the value of BB Co using the following methods. (i) price/earnings ratio method (ii) dividend growth model. (b) The following information was extracted from ABC Company's Balance Sheet: The Market Value of property in the Non-Current Assets is K50,000 more than the book value. The Loan Notes are redeemable at a \5 premium. Required: What is the value of a \70 holding using the net assets valuation basis
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