c) Dividend valuation method (10 marks) pls answ

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c) Dividend valuation method (10 marks)

C Dividend Valuation Method 10 Marks Pls Answ 1 (29.86 KiB) Viewed 42 times

pls answer only the question c) thank you

C Dividend Valuation Method 10 Marks Pls Answ 2 (106.5 KiB) Viewed 42 times

C Dividend Valuation Method 10 Marks Pls Answ 3 (44.88 KiB) Viewed 42 times

C Dividend Valuation Method 10 Marks Pls Answ 4 (64.36 KiB) Viewed 42 times

I needed an answer to the question C)
you answer the 3a &b but question c) wasn't answered
pls read the Mergers and the take overs...
number 3) u will get the data n numerical data to solve the question thank you
Given the above information calculate the value of Dragon PLC using the following valuation methods: a) Price/earnings ratio (10 marks) b) Discounted cash flow method (10 marks) c) Dividend valuation method (10 marks)
Question 3 - Mergers and Takeovers The managing directors of Kings PLC are considering what value to place on Dragon PLC, a company that they are planning to take-over soon. Kings' share price is currently £4.25 and the company's nings per share stand at 31p. Kings PLC weighted av capital is 11%. ge cost of The board estimates that annual after-tax synergy benefits resulting from the takeover will be £5.36m, that Dragon's distributable earnings will grow at an annual rate of 2.5%. That duplication will allow the sale of the £32m of assets, net of corporate tax (currently standing at 22%), in a year's time. Information relating to Dragon PLC: Financial Statement of Dragon PLC Non-current assets Current assets Total assets Equity Ordinary Shares (£0.5) 105 Reserves Total equity 169 £m 233 56 64
Reserves Total equity 7% bonds Current liabilities Total liabilities 120 Statement of Profit or Loss extracts £m 169 46 62.0 6.5 55.5 40.4 64 Profit before interest and tax Interest payments Profit before tax Taxation Distributable earnings Other financial market information: 74 15.1
Other financial market information: £2.45 14p 9p, 10.5p, 11p, 5.5% Current ex-div share price Latest dividend payment Past four years dividends payment 12p Dragon's equity beta Treasury bills yield Market risk rate 11% Given the above information calculate the value of Dragon PLC using the following valuation methods: a) Price/earnings ratio (10 marks) b) Discounted cash flow method (10 marks) c) Dividend valuation method (10 marks) 1.05