Question 4b
Marking Guide
| calculation of current cost of equity using capm | 1 | |
| pv of year 2 dividends | 0.5 | |
| pv of year 3 dividends | 0.5 | |
| year 3 dgm value | 2 | |
| year 0 pv of year 3 dgm value | 1 | |
| company value using dividend valuation model | 1 | |
| max marks | 6 |
| calculation of current cost of equity using capm | 1 | |
| pv of year 2 dividends | 0.5 | |
| pv of year 3 dividends | 0.5 | |
| year 3 dgm value | 2 | |
| year 0 pv of year 3 dgm value | 1 | |
| company value using dividend valuation model | 1 | |
| max marks | 6 |