Question: Second question (30%). Using the chop shop method, please determine a firms value for Dallas, Inc. Dallas common stock is trading at a total market

Second question (30%). Using the chop shop method, please determine a firms

value for Dallas, Inc.

Dallas common stock is trading at a total market price of 4 million. For Dallas, the accounting data are divided into three business segments as given below in the tables. Data for the firms three segments are as follows: Second question (30%). Using the chop shop

Business segments Segment's ($000) Sales Segment's Assets Segment's ($000) Earnings before Interest and Taxes (EBIT) Consumer wholesale 800 750 100 Specialty services 1500 700 150 Retirement 2000 3000 600 centers Total 4300 4450 850 Industry data for "pure-play" firms have been computed and are summarized as follows: Business Firm Value/Sales Firm value /Assets Firm Value/ EBIT segments Consumer 0.8 0.9 9 wholesale Specialty 1.1 0.7 10 services Retirement 1.2 0.8 12 centers

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