Question 12.Act.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.
The value of an ordinary share using the P/E ratio method will be:
P_{0}=11\times \frac{£3.6 (earnings available to shareholders)}{2.0 (number of ordinary shares)}
= £19.80
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