Reference no: EM133010597

Question - Jano-Vic Plc. is involved in the supply of machinery to the heavy industries. It has recently expanded its provision to the maintenance of the goods which it supplies to the extraction industries. The firm is financed entirely by equity and there are currently 4.5m shareholders.

The firm's equity has a nominal share value of £1.00.

Jano-Vic has a consistent dividends pay-out ratio of around 66%, for the years 2020 to 2016, but this has varied between these years.

Years 2020 2019 2018 2017 2016 Dividends £0.65 £0.53 £0.52 £0.49 £0.46

In terms of the Equity Beta of the firm, this is currently calculated at 0.82.

The riskfree rate is 1% per annum, for equivalent assets and timeframes and the returns on market assets is 15% per annum.

The current tax rate on dividends is 32.5% for higher rate taxpayers, and they have an annual allowance of £2,000 per annum. This is forecast to drop to £1,000 per investor for the tax year, 2021/22

Using the information provided calculate the Market Value of the Equity, using an appropriate model. (all stages of calculation should be rounded to 4 decimal places)