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ABC Ltd has operating revenue of $55,000 and expenses (fixed) of $5,000 and (variable) $12,000 p.a. If the required rate of return of equity holders
ABC Ltd has operating revenue of $55,000 and expenses (fixed) of $5,000 and (variable) $12,000 p.a. If the required rate of return of equity holders is 8%, and the company tax rate is 30%, what is the value of ABC Ltd?
a. | $376,250 | |
b. | $332,500 | |
c. | $481,250 | |
d. | $475,000 |
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