Company R is a well-established, unlisted, road freight company.

In recent years R has come under pressure to improve its customer service and has had some cusses in doing this However, the cost of improved service levels has resulted In it marketing small losses in its latest financial year. This is the forest time R has not been profitable.

R uses a’ residual divided policy ad has paid dividends twice in the last 10 years.

Which of the following methods would be most appropriate for valuating R?