You would like to buy a small but established sari-sari store in the barangay. You plan...
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You would like to buy a small but established sari-sari store in the barangay. You plan to choose among three options based on the price-revenue ratio. You will be buying the chosen store but the liabilities will be retained by the original owner. By your estimate, these are the relevant financial information: Mang Juan's Ate Joy's P 300,000.00 P 100,000.00 210,000.00 130,000.00 40,000.00 33,000.00 Book value of assets Book value of liabilities Market value of net assets Annual Revenue Net Operating Income Net income 350,000.00 P 120,000.00 250,000.00 145,000.00 42,000.00 34,000.00 Nay's 370,000.00 110,000.00 250,000.00 180,000.00 55,000.00 47,000.00 Assuming that liabilities approximate their fair values, what is the relative value of Mang Juan's to the overall group? You would like to buy a small but established sari-sari store in the barangay. You plan to choose among three options based on the price-revenue ratio. You will be buying the chosen store but the liabilities will be retained by the original owner. By your estimate, these are the relevant financial information: Mang Juan's Ate Joy's P 300,000.00 P 100,000.00 210,000.00 130,000.00 40,000.00 33,000.00 Book value of assets Book value of liabilities Market value of net assets Annual Revenue Net Operating Income Net income 350,000.00 P 120,000.00 250,000.00 145,000.00 42,000.00 34,000.00 Nay's 370,000.00 110,000.00 250,000.00 180,000.00 55,000.00 47,000.00 Assuming that liabilities approximate their fair values, what is the relative value of Mang Juan's to the overall group?
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To determine the relative value of Mang Juans sarisari store compared to the overall group we can ca... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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