From the following information compute the following: Approach Valuation Method Value (INR) Weight Market Comparative business sales
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Question:
From the following information compute the following:
Approach | Valuation Method | Value (INR) | Weight |
Market | Comparative business sales | 10,00,000 | 30% |
Income | Discounted Cash Flow | 15,00,000 | 20% |
Income | Multiple Discretionary Earnings | 20,00,000 | 10% |
Asset | Asset Accumulation | 25,00,000 | 40% |
Additional Information:
Discount rate is 30% and the forecast suggests that the business profits would be growing at a steady rate of 5% per year.
i)Calculate business value
ii) Capitalisation rate
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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