Recent financial information relating to Wiggy Co, a stock market listed company, is as follows.

$m

Profit after tax (earnings) 66.6

Dividends40.0

STATEMENT OF FINANCIAL POSITION INFORMATION

$m

Non-current assets 595

Current assets 125

Total assets 720

Equity

Ordinary shares ($1 nominal) 80

Retained earnings 410

490

Non-current liabilities

6% bank loan 40

8% bonds ($100 nominal) 120

160

Current liabilities70

Total equity and liabilities 720

Financial analysts have forecast that the dividends of Wiggy Co will grow in the future at a rate of 4% per year. This is slightly less than the forecast growth rate of the profit after tax (earnings) of the company, which is 5% per year. The finance director of Wiggy Co thinks that, considering the risk associated with expected earnings growth, an earnings yield of 11% per year can be used for valuation purposes. Wiggy Co has a cost of equity of 10% per year.

Calculate the value of Wiggy Co using the net asset value method.

Calculate the value of Wiggy Co using the dividend growth model (DGM).

Calculate the value of Wiggy Co using the earnings yield method.