User Account

All Pages

How much is the value of the stocks

Assignment Help Accounting Basics
Reference no: EM133039546

Problem - 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 -

1. How much is the value of the stocks? Are you going to accept the offer?

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

3. Are you going to accept the offer if the required return is 12%? Why?

Reference no: EM133039546

Questions Cloud

Testimony are critical aspects of digital forensics : The topics of reporting and of expert witness testimony are critical aspects of digital forensics.
Prepare komiko journal entries for purchase of investment : Prepare komiko journal entries for (a) the purchase of the investment (b) the interest received and (c) the fair value adjustment
Difference between book values and market values : What is the difference between book values and market values on the statement of financial position and explain which is more important to the financial manager
What are penalties for violating the law : What are the penalties for violating the law? What other critiques or opinions do you have about it?
How much is the value of the stocks : The Year 1 revenue is Php5 Million and expected to constantly grow by 5%. How much is the value of the stocks? Are you going to accept the offer
Calculate the weighted average cost of capital : Additional information Issued shares: 10 000 000 ordinary shares Debt: R200m Before tax borrowing cost: 12%. Calculate the weighted average cost of capital
Encryption Standards : Analyze the structure of advanced encryption standards and why it makes it so strong.
Strengthen the company competitive position : Analyze how Coca-Cola is using one or more of the five generic strategies to strengthen the company's competitive position. Recommend at least one additional st
Dealing with malicious computer programs : It is critical for digital investigators to understand that they will be dealing with malicious computer programs.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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