ube Maps tes remaining Question 1 (34 marks) - Company Valuation Lennon plc is planning to take over a smaller private limited company, McCartney Ltd, and needs to value the company Lennon plc has gathered the following data: Lennon PIC Weighted Average Cost of Capital (WACC) 14% Price/earnings (P/E) ratio Shareholders' cost of equity 16% McCartney Ltd Current dividend payment 0.27 Past 5 years' dividend payments (earliest first) 0.15, 0.18 0.20, 0.22, 0.23 Current earnings per share (EPS) 0.38 Number of ordinary shares in issue 4,000,000 Requirements: a. Given the information provided above, estimate values for McCartney Ltd using the following valuation methodologies Vuru Maps minutes remaining Current earnings per share (EPS) Number of ordinary shares in issue 0.38 4,000,000 Requirements: a. Given the information provided above, estimate values for McCartney Ltd using the following valuation methodologies i.P/E ratio (comparable) and; ii. Dividend growth model (16 marks) b. Discuss THREE problems associated with EACH of the above valuation techniques and recommend which range of value(s) McCartney Plc should use (18 marks) Fill in your answer here Format - BI U X, X IX 5 :: : mm [ 8