Note that you must answer both parts (a) and (b) of this question. Show all formulae...
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Note that you must answer both parts (a) and (b) of this question. Show all formulae and calculations. Round to 2 decimal places. (a) Calculate the Price / Earnings ratio of A Co; B Co and C Co. Use the information below. Company D&A A Co B Co C Co 200,000 2,000,000 3,000 EBIT 1,200,000 Interest Tax 30,000 100,000 10,000,000 900,000 3,000 100,000 1,000,000 6,000 Outstanding Share Shares Price 2,000,000 2 400,000 90 21,000 5 Debt 2,000,000 18,000,000 52,500 (b) A Co; B Co and C Co are listed on the local stock exchange and are comparable to Client Co (an unlisted company). Client Co had earnings of $2,000,000 last year. Calculate a valuation of Client Co. Use your answers calculated in part a (above) and the Comparable Companies valuation method. Note that you must answer both parts (a) and (b) of this question. Show all formulae and calculations. Round to 2 decimal places. (a) Calculate the Price / Earnings ratio of A Co; B Co and C Co. Use the information below. Company D&A A Co B Co C Co 200,000 2,000,000 3,000 EBIT 1,200,000 Interest Tax 30,000 100,000 10,000,000 900,000 3,000 100,000 1,000,000 6,000 Outstanding Share Shares Price 2,000,000 2 400,000 90 21,000 5 Debt 2,000,000 18,000,000 52,500 (b) A Co; B Co and C Co are listed on the local stock exchange and are comparable to Client Co (an unlisted company). Client Co had earnings of $2,000,000 last year. Calculate a valuation of Client Co. Use your answers calculated in part a (above) and the Comparable Companies valuation method.
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a To calculate the PriceEarnings PE ratio for each company we need to divide the share price by the ... View the full answer
Related Book For
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
Posted Date:
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