The most recent statement of financial position for Imperial plc is given in the following table....

 

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The most recent statement of financial position for Imperial plc is given in the following table. Imperial is a public-listed firm which manufacture drugs to cure Covid-19 disease: Statement of financial position as at 30 June 2020 Assets utilised Fixed (non-current) million million million assets Tangible 100 Intangible 240 340 Current assets Stocks and work-in- progress 160 Accounts Receivables 40 Bank 10 210 Current liabilities Accounts Payable (20) Bank overdraft (40) (60) Net current assets 150 10% bond (80) Net assets 410 0 200 100 Reserves 110 410 Ordinary equity (25pence par value) Share premium account Investors' funds Further information: 1. 600 million sales was made in 2019 with a margin of 50% 2. Corporation tax rate is thirty-three percent. 3. Sales range is between 300 million and 700 million for the past five years. 4. Revaluation of tangible fixed assets 130 million. 5. Significant patent worth forty million pounds expiring in April 2021. 6. Fifty percent of working capital without any signed contracts. 7. Drug research companies have average PE ratio of 44:1. Pharmaceutical companies have a ratio of 28:1. The firm's P:E ratio is 40:1. 3. Depreciation of fixed assets = 10 million per year. Depreciation of intangible assets 50 million per year 9. Interest charge for overdraft = 3%. 10. Annual capital investment 10 million. Required: (a) Find out the value of the firm based upon the following methods: (i) NAV (ii) P/E ratio (5 marks) (9 marks) The most recent statement of financial position for Imperial plc is given in the following table. Imperial is a public-listed firm which manufacture drugs to cure Covid-19 disease: Statement of financial position as at 30 June 2020 Assets utilised Fixed (non-current) million million million assets Tangible 100 Intangible 240 340 Current assets Stocks and work-in- progress 160 Accounts Receivables 40 Bank 10 210 Current liabilities Accounts Payable (20) Bank overdraft (40) (60) Net current assets 150 10% bond (80) Net assets 410 0 200 100 Reserves 110 410 Ordinary equity (25pence par value) Share premium account Investors' funds Further information: 1. 600 million sales was made in 2019 with a margin of 50% 2. Corporation tax rate is thirty-three percent. 3. Sales range is between 300 million and 700 million for the past five years. 4. Revaluation of tangible fixed assets 130 million. 5. Significant patent worth forty million pounds expiring in April 2021. 6. Fifty percent of working capital without any signed contracts. 7. Drug research companies have average PE ratio of 44:1. Pharmaceutical companies have a ratio of 28:1. The firm's P:E ratio is 40:1. 3. Depreciation of fixed assets = 10 million per year. Depreciation of intangible assets 50 million per year 9. Interest charge for overdraft = 3%. 10. Annual capital investment 10 million. Required: (a) Find out the value of the firm based upon the following methods: (i) NAV (ii) P/E ratio (5 marks) (9 marks)