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43. MSC ACF LTD is planning to obtain a stock market listing by offering 40% of its existing shares to the public. No new shares

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43. MSC ACF LTD is planning to obtain a stock market listing by offering 40% of its existing shares to the public. No new shares will be issued. Its most recent summarized results are as follows; The company is lowly geared and has a dividend policy of 50% pay-out rate. And the retention policy is expected to achieve 10% dividend growth each year. Summarized details of two listed companies in the same industry as MSC ACF Ltd are as follows: The current Treasury bill yield is 20% per annum. The average market return is estimated to be 25%. The shares will be offered to the public at a price 15% lower than the estimated market valuation in order to increase the prospects of success for the public issue. Required: What will be the issue price? 44. Share or business valuation is typical of unquoted companies, who may want to value their shares or business for a number of reasons. Identify any five (5) reasons why an unquoted company may want to value its shares or business. 45. BMK Ltd has net tangible assets of GHs48,000 and earnings of GHs16,000. ABS Ltd wants to takeover BMK Ltd and considers that a fair return for this type of industry is 30% and decided to value BMK taking goodwill at 4 years' purchase of super profit. Determine the value of BMK Ltd. 43. MSC ACF LTD is planning to obtain a stock market listing by offering 40% of its existing shares to the public. No new shares will be issued. Its most recent summarized results are as follows; The company is lowly geared and has a dividend policy of 50% pay-out rate. And the retention policy is expected to achieve 10% dividend growth each year. Summarized details of two listed companies in the same industry as MSC ACF Ltd are as follows: The current Treasury bill yield is 20% per annum. The average market return is estimated to be 25%. The shares will be offered to the public at a price 15% lower than the estimated market valuation in order to increase the prospects of success for the public issue. Required: What will be the issue price? 44. Share or business valuation is typical of unquoted companies, who may want to value their shares or business for a number of reasons. Identify any five (5) reasons why an unquoted company may want to value its shares or business. 45. BMK Ltd has net tangible assets of GHs48,000 and earnings of GHs16,000. ABS Ltd wants to takeover BMK Ltd and considers that a fair return for this type of industry is 30% and decided to value BMK taking goodwill at 4 years' purchase of super profit. Determine the value of BMK Ltd

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