Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
18. SLMA Corp. for the last ten years, has earned and had cash flows of about P600,000 every year. As per the predictions of the
18. SLMA Corp. for the last ten years, has earned and had cash flows of about P600,000 every year. As per the predictions of the company's earnings, the same cash flow would continue for the foreseeable future. The expenses for the business every year is about P500,000 only. Based on the available public information a P4 million Treasury bond has a prevailing return of P40,000 quarterly. Using Capitalization of Earnings approach, assuming SLMA would sell 20% of its shareholdings, what will be the minimum selling price? a. Php 2,500,000.00 b. Php 500,000.00 c. Php 1,500,000.00 d. Php 1,000,000.00 40
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started