i) Value per share using DDM is 42.74

a. Following is the information about Steady plc, a company in steady state. ii. Estimate the return on equity and book value of equity per share. (4 marks) iii. Estimate the value per share using the FCFE model. (4 marks) iv. How do you explain the difference in the values obtained in (i) and (iii) above? Which of these values would you use to compare with the market price in order to identify whether Steady Plc is under- or overvalued? (5+3 marks ) a. Following is the information about Steady plc, a company in steady state. ii. Estimate the return on equity and book value of equity per share. (4 marks) iii. Estimate the value per share using the FCFE model. (4 marks) iv. How do you explain the difference in the values obtained in (i) and (iii) above? Which of these values would you use to compare with the market price in order to identify whether Steady Plc is under- or overvalued? (5+3 marks )