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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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