Question: You are trying to estimate the proper share price for each of the following companies using data at the end of 2010. Required: (a) Calculate

You are trying to estimate the proper share price for each of the following companies using data at the end of 2010.

Required:
(a) Calculate the net book value per share, ignoring the liquidation adjustments, for each company.
(b) Calculate the net book value per share on a liquidation basis for each company
(c) Calculate the estimated share price using the dividend yield method
(d) Calculate the estimated share price using the P/E ratio method.

Fair Inc. $3,000.000 $659,000 $1950,000) 00,000 $356,000 6.07% 15 Share Corp $7,000,000 1.211,000 $600,000 500,000 $792,000 8.25% 20 Air Ltd. Net assets 2010 net income Liquidation basis fair value adjustments Number of shares outstanding 2010 annual dividend Dividend yield dividends per share /share price P/E ratio $1,250,000 $211,000 $450,000 300,000 $95,000 3,04% 10

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