An investor was offered by an existing stockholder to purchase his shares from Camacho Corp at Php46.00 per share. The outstanding shares of the company is 1 Million. The Year 1 revenue is Php5 Million and expected to constantly grow by 5%. The EBITDA margin remains to be stable at 50%. The required rate of return is 10%. Their outstanding loans is Php17 Million. Reqs: a. How much is the value of the shares? Are you going to accept the offer? please show solution.

Answer rating: 100% (QA)

STEP1 CALCULATION OF VALUE OF PRESENT VALUE OF FUTURE CASH FLOWS OR ... View the full answer