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Question 12.17: Calculate the value of an ordinary share in CDC Ltd, using t...

Calculate the value of an ordinary share in CDC Ltd, using the P/E ratio method.

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The value of an ordinary share using the P/E ratio method will be:
P_{0} = 11 \times \frac{£3.6 \text{(earnings available to shareholders)}}{2.0 \text{(number of ordinary shares)}}
= £19.80

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