Exam F3 Topic 4 Question 411 Discussion

A. Total earnings x appropriate price-earnings ratio.

B. Non-current assets, plus current assets, minus current liabilities

C. Forecast future cash flows to equity, discounted at the cost of equity.

D. Forecast future cash flows to all Investors, discounted at the weighted average cost of capital.

E. Expected dividend in one year's time / (cost of equity - growth rate).