Consider the following figures from the Balance Sheet and Condensed Income Statement of Dennis CC, a...

 

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Consider the following figures from the Balance Sheet and Condensed Income Statement of Dennis CC, a SME from GOBABIS, in order to answer questions (4.1) to (4.7) below [Determine the Value of the Business for Buy-out purposes]: Information 1 Capital invested by the owner: N$ 600 000 2 The salary foregone is N$ 250 000 3 Risky investment of 15% 4 Growth wanted is 20 % 5 Retained profit for 2018 is N$ 200 000 Calculate the following: 4.1 4.2 4.3 Year Net Profits 4.5 4.6 4.7 2018 200 900 2017 180 200 5 Adjustable Tangible Net Worth. Opportunity Cost Growth Rate % of Net Profit Estimated Net Earnings for the next year Extra Earning Power Goodwill Value of the Business 2016 150 500 (3) (3) (3) (3) (3) (3) (3) [21] Consider the following figures from the Balance Sheet and Condensed Income Statement of Dennis CC, a SME from GOBABIS, in order to answer questions (4.1) to (4.7) below [Determine the Value of the Business for Buy-out purposes]: Information 1 Capital invested by the owner: N$ 600 000 2 The salary foregone is N$ 250 000 3 Risky investment of 15% 4 Growth wanted is 20 % 5 Retained profit for 2018 is N$ 200 000 Calculate the following: 4.1 4.2 4.3 Year Net Profits 4.5 4.6 4.7 2018 200 900 2017 180 200 5 Adjustable Tangible Net Worth. Opportunity Cost Growth Rate % of Net Profit Estimated Net Earnings for the next year Extra Earning Power Goodwill Value of the Business 2016 150 500 (3) (3) (3) (3) (3) (3) (3) [21]

Answer rating: 100% (QA)

1 Adjustable tangible net assets refer to the value of a companys assets minus its liabilities with the inclusion of any intangible assets Adjustable ... View the full answer