Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question -
a) ABC ltd reported a significant loss of Ksh.2.74 per share in 2009 but reported positive earnings per share (EPS) of Ksh.1.38 in the following year, as sales improved and profit margins increased. The improving economy is expected to quadruple earnings in 2011., after which earnings growth is expected to stabilize at 5% in the long term.ABC Ltd also reported capital spending per share of Ksh.5.50 and depreciation per share of KSh.4.5 in 2010 and both items are expected to grow at 5% a year in the long term. Assume a risk premium of 6 %. The working capital for the firm amounted to Ksh. 2.50 per share in 2010 and was expected to grow at 3% a year in the long term.
The beta for the stock is 1.25, but it is expected to stabilize at 1.10 after 2011. The firm expects to maintain a debt-equity ratio of 4%. The treasury bond rate stands at 7% and the risk premium is 5.5%.
Required:
i) Estimate the value per share.
ii) How sensitive is this estimate to assumptions about growth in the year 2011.
b) Briefly discuss the misconceptions (myths) about valuation.
c) Discuss the various valuation approaches clearly stating their limitations and suitability in various types of valuation (IPO private Company etc.
if size of the market is approximately 100000 customers and company expects to reach their normal market share
On average, do acquiring or target shareholders gain more from the acquisition? On average, does acquiring or target management gain more from an acquisition?
Explain the impact of Our domestic product and income increase and Foreign domestic product and income decrease on our country's exports and imports:
Ratio analysis during the last three years. How do you think about current stock prices of your firm and its competitor? Are they undervalued or overvalued?
A comparison of U.S. and Japanese companies in the chemical industry showed more companies in Japan used just-in- time than in the United States. Why do you think Japanese companies were more likely to use just-in-time?
Compute the following ratios using the balance sheet and income statement data you collected- Quick ratio, Inventory turnover, Debt ratio, Net profit margin, Return on Investment (or assets), P/E ratio and Return on equity.
A farmer has an contract for a fixed price of a product that is being sold in interstate commerce for a competitive value. Is this legal?
Outline two potential problems with the use of relevant costing in decision making. Fixed overhead is absorbed at the rate of 200% on direct wages.
What are the mean and standard deviation of returns on her optimal risky portfolio? Must show your calculation by including the formulas you used.
Compute the NC equipment's accounting rate of return. Compute the investment's net present value, assuming a required rate of return of 10 percent. Compute the investment's internal rate of return.
Prepare a statement of the relevant costs of the contract and state whether or not the contract should be undertaken by Didcot. Provide notes to indicate why you have selected some costs and rejected others.
Calculate profits from trading, equal to selling market price of an option minus buying market price of the same option.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd