Exam F3 Topic 6 Question 337 Discussion

Actual exam question for CIMA's F3 exam
Question #: 337
Topic #: 6
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.

Suggested Answer:

$ ? million
56.76, 56.75

by Vic at Jun 28, 2025, 03:49 PM

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