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The following information is available in respect of Panoda Ltd Estimated sustainable long term Earnings at the end of the year 1 Fair payout
The following information is available in respect of Panoda Ltd Estimated sustainable long term Earnings at the end of the year 1 Fair payout ratio Estimated sustainable long term Dividend at the end of year 1 Fair rate of return (required rate) Expected rate of return Depreciation new investment in fixed assets and working capital Finance costs interest Net assets I $110 000 30% $33 000 25% 30% 0 0 $366 667 Required Value the company according to each of the valuation models; present value of future cash flows, dividend yield method, earnings yield, price earnings, free cash flow capitalisation of income method super profits, intrinsic value method
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To value Panoda Ltd according to each of the valuation models we will need to use the information provided and make certain assumptions where necessary The following are the valuations using different ...Get Instant Access to Expert-Tailored Solutions
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