Make the following Assumptions: Tangible Asset Value = 16,200,000 Required Return on Tangile Assets...
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Make the following Assumptions: • Tangible Asset Value = 16,200,000 • Required Return on Tangile Assets = 16% Required Return on Equity = 24% Forecast Net Income for next period (year) = 4,800,000 Capitalization Rate for Excess earnings to compute Intangible Asset Value = 30% ⚫ Current Market Value of Interest Bearing Liabilities = 12,000,000 Compute the Market Value of Equity using the Excess Earnings Approach Make the following Assumptions: • Tangible Asset Value = 16,200,000 • Required Return on Tangile Assets = 16% Required Return on Equity = 24% Forecast Net Income for next period (year) = 4,800,000 Capitalization Rate for Excess earnings to compute Intangible Asset Value = 30% ⚫ Current Market Value of Interest Bearing Liabilities = 12,000,000 Compute the Market Value of Equity using the Excess Earnings Approach
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To compute the market value of equity using the Excess Earnings Approach we need to calculate the in... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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