If the company’s Earnings available to equity shareholders are OMR 60,000, its cost of equity is 8% and overall cost of capital is 12%, what is the market value of the equity shares under Net Income Approach? a. OMR 500,000 b. OMR 750,000 c. OMR 900,000 d. Cannot be calculated
If the company’s Earnings available to equity shareholders are OMR 60,000, its cost of equity is 8% and overall cost of capital is 12%, what is the market value of the equity shares under Net Income Approach? a. OMR 500,000 b. OMR 750,000 c. OMR 900,000 d. Cannot be calculated
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.10BE: Common stockholders' profitability analysis A company reports the following: Net income 1,000,000...
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Q14
If the company’s Earnings available to equity shareholders are OMR 60,000, its cost of equity is 8% and overall cost of capital is 12%, what is the market value of the equity shares under Net Income Approach?
a.
OMR 500,000
b.
OMR 750,000
c.
OMR 900,000
d.
Cannot be calculated
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