Question:

1. Calculate the

(1) Payback period,

(2) Accounting rate of return (Using initial investment approach),

(3) Net present value,

(4) Internal rate of return

For both town centre and out-of-town shopping centre options.

2.

(1) Calculate the current earnings per share of MY?s Salon,

(2) Calculate the current share price of MY?s Salon.

3.

(1) Calculate the cost of MY?s Salon?s proposed bid for L&L Salon.

(2) Earnings per share for MY?s Salon following the successful takeover of L&L Salon.

Transcribed Image Text:

MY's Salon is a UK corporation operating in the nail salon industry. The company has over 100 nail salons which mainly are in London and South UK. The most recent summarised accounts for MY's Salon are given below. Income statement for the year ended 31 July 2022. Sales Profit before interest and taxation Interest payable Profit before taxation Taxation Net profit after taxation Dividends Retained profit for the year Balance Sheets for the year ended as of 31 July 2022. Fixed assets Net current assets Debt & Equity Long term debte Short term debt Capital and reserves Ordinary shares Retained profite Total Debt & Equity Note: Price earnings ratio to bid of MY's salon is 15. £m £me 1344 18 -3 15+ ܚܐ ܚ ܬܐ ܗ 124 -6 ထိ 110 30 140 50 30 80€ e 50€ 10 60€ 140 MY's Salon is a UK corporation operating in the nail salon industry. The company has over 100 nail salons which mainly are in London and South UK. The most recent summarised accounts for MY's Salon are given below. Income statement for the year ended 31 July 2022. Sales Profit before interest and taxation Interest payable Profit before taxation Taxation Net profit after taxation Dividends Retained profit for the year Balance Sheets for the year ended as of 31 July 2022. Fixed assets Net current assets Debt & Equity Long term debte Short term debt Capital and reserves Ordinary shares Retained profite Total Debt & Equity Note: Price earnings ratio to bid of MY's salon is 15. £m £me 1344 18 -3 15+ ܚܐ ܚ ܬܐ ܗ 124 -6 ထိ 110 30 140 50 30 80€ e 50€ 10 60€ 140

Answer rating: 100% (QA)

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