Question 2b
Marking Guide
Average earnings and capital employed 1
After-tax annual premium 1
PV of premium (excess earnings method) 1
Hav Co and Strand Co values 1
Combined company value 1
Value created/premium (PE method) 1
Max marks 6
Average earnings and capital employed 1
After-tax annual premium 1
PV of premium (excess earnings method) 1
Hav Co and Strand Co values 1
Combined company value 1
Value created/premium (PE method) 1
Max marks 6