$ ?

CORRECT TEXT

A company is wholly equity funded. It has the following relevant data:

• Dividend just paid $4 million

• Dividend growth rate is constant at 5%

• The risk free rate is 4%

• The market premium is 7%

• The company’s equity beta factor is 1.2

Calculate the value of the company using the Dividend Growth Model.

Give your answer in $ million to 2 decimal places.

$ ? million

View Answer

Answer: 56.76, 56.75