16.31 Going-concern value: Ringwood Motors is a chain of used car dealerships that has publicly traded shares. Using the adjusted book value approach, you have estimated the value of Ringwood Motors to be $45 646 000. The company has $40.5 million of debt outstanding. Its share price is $5.5 per share, and there are 1,378,000 shares outstanding. What is the going concern value of Ringwood Motors?

Use the following information concerning Johnson Machine Tools Ltd in problems 16.31

Johnson's income statement from the fiscal year that ended this past December is:

Revenue $ 995 Cost of sales 652 Gross profit $343 Selling, general and administrative expenses 135 Operating profit (EBIT) $ 208 Interest expense 48 Earnings before tax $ 160 Tax 64 Profit $ 96 All dollar values are in millions. Depreciation and amortisation expenses last year were $42 million, and the company has $533 million of debt outstanding