Bloom Co is listed on the stock market and has increased earnings over the last year. As a result, the board of directors has increased the dividend payout ratio from $36\%$ for the year to June $20\backslash$times $4$ to $37\mathrm{.}1\%$ for the year to June $20$X$5.$ Bloom Co has a cost of equity of $13\%.$ The following information is also available: The nominal value of ordinary shares of Bloom Co is $$0\mathrm{.}50$ per share. Listed companies similar to Bloom Co$.$ have an earnings yield of $9\mathrm{.}2\%$ What is the equity market value of Bloom Co$.$ using the Dividend growth model? a$)$ $$39$m b$)$ $$92$m c$)$ $$97$m d$)$ $$105\mathrm{.}5$m What is the equity market value of Bloom Co$.$ using the Earnings yield method? a$)$ $$12$m b$)$ $$105\mathrm{.}5$m c$)$ $$132$m d$)$ $$138$m The following statements relate to the Dividend Growth Model $($DGM$)$ and the Earnings Yield Method $($EYM$)$ i$.$ The EYM uses profit $($rather than cash$)$ so is the preferable method for Bloom Co$.$ ii$.$ In an acquisition context, the EYM is used to value a minority shareholding in a target company. Are all the statements true or false? a$)$ Both statements are true b$)$ Both statements are false c$)$ Statement $1$ is true and Statement $2$ is false d$)$ Statement $2$ is true and Statement $1$ is false