=

(d) In December 2014, the company’s market capitalisation has fallen to 90 million

(still with the same number of shares in issue) and the estimated value of the share is 120. Rowak’s chairman puts forward his proposal again. What do you think now?

(figures in millions)

Revenue Net profit Pre-tax interest expenses Book value of equity Net debt Market capitalisation 2009 170 8 9 50 60 55 2010 130 10 10 60 70 90 2011 170 11 10 71 75 152 2012 220 13 9 84 76 195 2013 230 13 7 97 70 210 2014 240 13 6 110 65 200