The shares of Nakuru Manufactures have a nominal value (par value) of Ksh. 0.5 per share and

Fantastic news! We've Found the answer you've been seeking!

Question:

The shares of Nakuru Manufactures have a nominal value (par value) of Ksh. 0.5 per share and a market value of Ksh. 4 per share. The business sector of Nakuru Manufactures has an average price/earnings ratio of 17 times.

The expected net realizable value of non current assets and inventory are Ksh. 86Million and Ksh. 4.2 Million respectively.

The event of liquidation, only 80% of the trade receivables are expected to be collectible.

Required:

Calculate the value of Nakuru Manufactures using market capitalization (Equity market value) method.

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

See More Books

Posted Date: Apr 10, 2023 11:37 PM

See More Questions

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Subject : Strategic Management in a Global Environment Safaricom: Innovative Telecom Solutions to Empower Kenyans As the largest mobile provider in Kenya, Safaricom has touched the lives of Kenyans...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
A survey of recent masters of business administration (MBAs) reveals that their starting salaries follow a normal distribution with mean $48,000 and standard deviation $9,000. Find the probability...
Osmond Manufacturing Company produces a single product. The following data apply to the standard cost of materials and labor associated with making the product. During the year, the company made...
For each of the following separate situations, determine the amount of expense each company should recognize in December (using accrual basis accounting). a. Chipotle has monthly wages expense of...
What are the bounds on the correlation coefficient?
Jenna Lindsay works at College of Boston and is paid $40 per hour for a 40-hour workweek and time-and-a-half for hours above 40. Requirements 1. Compute Lindsays gross pay for working 54 hours during...
Discuss why it is important to have clear boundaries in HRM. Discuss how responsibilities should be distributed among local, regional, and global HR units. Explain how HRM responsibilities should be...
A retail outlet sells holiday candy for $10 per bag. The cost of the product is $8 per bag. All units not sold during the selling season prior to the holiday are sold for half the retail price in a...
Reminder: Make sure that your calculator is in DEGREE mode. If you are not sure, check with your teacher. 1. On the line below each triangle, show the solution set-up for the triangle using the...
Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Joint Cost $110,000 Cereal Yummies Quantity at Split-Off Point 14,000...
purposes. Revenue Employee salaries and wages Servicing materials Other expenses Fixed Element per Month Variable Element per Well Serviced $4,000 $43,800 $ 1,000 $ tA 600 $38,200 A total of 42 wells...
Let f(x) = = = 2x + 5 and g(x) = 9x 4. Find the function f g. (f - g)(x) = Find the domain. (Enter your answer using interval notation.)
Write an equation of the line that passes through (5,-2) and is perpendicular to the line defined by x-3y=1. Write the answer in slope-Intercept form (If possible) and in standard form (Ax+By C) with...
Solve the equation. Write the solution set with the exact solutions. 5 log (7w+1)+3 = 13 If there is more than one solution, separate the answers with commas. There is no solution, {}. The exact...
Mobile cranes have specified lifting capacities based on their design and configuration. Exceeding the crane's lifting capacity can put excessive stress on the crane's structure and compromise its...
A parking lot charges $3 for the first hour (or part of an hour) and $2 for each succeeding hour (or part), up to a daily maximum of $10. (a) Sketch a graph of the cost of parking at this lot as a...
Suppose a firm has generated 10.25 percent revenue growth in the past two years, consisting of 5.0 percent growth in sales volume compounded with 5.0 percent growth in prices. Describe one...
Rock of Ages, Inc., a large North American integrated granite quarrier, manufacturer, and retailer of finished granite memorials, reported a net loss for 2004 of $3.2 million. In 2004, the firm...
The Coca-Cola Company is a global soft-drink beverage company that is a direct competitor with Starbucks. The data in Chapter 12, Exhibits 12.14 through 12.16 (pages 806-809), include the actual...
You are assigned to a new data warehouse project and notice in the charter that there are four business units listed as sponsors. The data warehouse system has been discussed at your organization for...
The project manager is in the process of meeting with various people who are impacted by his new project. He is attempting to find out what their needs are for the project as well as any constraints...
The project manager and the functional manager at the pharmaceutical company are having a discussion about the project to create a system to produce antibiotic and intravenous injection vials. The...

The shares of Nakuru Manufactures have a nominal value (par value) of Ksh. 0.5 per share and

Question:

Expert Answer:

To calculate the value of Nakuru Manufactures using the market capitalization method we need to mult... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

Students also viewed these accounting questions