Multiple Choice
From the following data,calculate the total market value of the firm.Earnings before interest = $0.1 million,D = $0.2 million,interest on debt = 10% p.a. ,cost of equity capital = 20%,the dividend payout ratio = 0.5,and assume no taxes.
A) $200 000
B) $500 000
C) $473 684
D) $400 000
Correct Answer:
Verified
Correct Answer:
Verified
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