User Account

All Pages

How much is the value of the shares

Assignment Help Financial Accounting
Reference no: EM133008811

Question - An investor was offered by an existing stockholder to purchase his shares from Sansrival Corp at Php46.00 per share. The outstanding shares of the company is 1 Million. The Year 1 revenue is Php5 Million and expected to constantly grow by 5%. The EBITDA margin remains to be stable at 50%.

The required rate of return is 10%. Their outstanding loans is Php17 Million.

Required -

a. How much is the value of the shares? Are you going to accept the offer?

b. How much is the value of the stocks if there is no loans outstanding?

c. Are you going to accept the offer if the required return is 12%? why?

Reference no: EM133008811

Questions Cloud

Explain the logic why this is the case : In your answer, identify whether the bond is trading at a discount or a premium, and explain the logic why this is the case. Show all calculations
Explain the characteristics of performance-driven team : With a high performance drive culture, the healthcare team cultivates an energy. Explain the characteristics of performance-driven team.
What is the percentage saved : A retailer offers a trade discount of 30% and a cash discount of 10%. If a tradesperson pays cash of $315 for goods, what is the percentage saved
Describe difference intrinsic vs extrinsic motivation : Describe the difference between intrinsic and extrinsic motivation and explain why it is important in understanding the types of motivation
How much is the value of the shares : An investor was offered by an existing stockholder to purchase his shares from Sansrival Corp at Php46.00 per share. How much is the value of the shares
What are the assumptions underpinning the theory : A phenomenon is the term used to describe a perception or responses to an event. What are the assumptions underpinning this theory?
Determine the net realizable value of accounts receivable : An analysis of receivables estimates uncollectible receivables as $25,000. Determine the net realizable value of accounts receivable after adjustment
Discuss education points for patients with psoriasis : Discuss education points for patients with psoriasis. The nurse is discussing important areas for the patient and caregiver to understand.
Why does henry jump into the river : Describe what the main characters are like and how we come to know them (by telling? by showing? by dialogue? By entering their minds?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd