What percentage of moana food value can be attributed

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Reference no: EM132794933

Problem 1: Moana Foods is a snack food company that is planning a public offering. The company expects to be priced based on revenues and the competitors in the business are all generic snack food companies that are publicly traded and trade at 1.8 times next year's revenues. These generic companies are expected to have an after-tax operating margin of 8%, a sales-to-capital ratio of 1.5 and are expected to grow 3% a year in perpetuity. If the generic companies are correctly priced and Moana Foods is expected to generate twice the operating margin of and the same cost of capital, sales to capital ratio and growth rate as the generic companies, what percentage of Moana Food's value can be attributed to brand name?

Reference no: EM132794933

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