You plan to go public for the Mor A.. and company managers want to check the market
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Question:
You plan to go public for the Mor A.Ş. and company managers want to check the market value. See the table for questions.
Firm | Stock Price | Book Value of Equity | Shares Outstanding | Net Profit |
Beyaz A.Ş. | 8,50 | 13.745.913 | 4.000.000 | 19.231.453 |
Siyah A.Ş. | 7,50 | 106.507.043 | 18.000.000 | 24.568.634 |
Mavi A.Ş. | 4,70 | 109.451.887 | 30.000.000 | 40.654.872 |
Kırmızı A.Ş. | 10,10 | 82.413.451 | 12.000.000 | 29.833.272 |
- Calculate the average Market Value / Book Value (MV/ BV) ratio of the sector.
- What is the expected market price of each stock, if the book value of equity of Mor A.Ş is 8.891.840 TL and the shares outstanding is 8 million?
- Calculate the average Price Earnings Ratio (P / E) of the sector
- What is the expected market price of each stock if the net profit of the Mor A.Ş is TL 6.645.315?
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
Posted Date: