Question 12.A.21: Calculate the value of an ordinary share in CDC Ltd using th...
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 × \frac{£3.6 (earnings available to shareholders)}{2.0 (number of ordinary shares)}
= £19.80
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