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ACTIVITY: *Determine the cash value of any business using four corporate evaluation methods. The student will: Corporate evaluation methods *explain why is it important to
ACTIVITY: *Determine the cash value of any business using four corporate evaluation methods. The student will: Corporate evaluation methods *explain why is it important to have a reasonable knowledge of what the firm is worth? *apply the problem data to the four corporate evaluation methods *calculate and compile the results for each method *evaluate and explain the results *determine, prioritize, recommend, and defend the best corporate evaluation method (20 points) Complete the following corporate valuation methods (five) based on the following data: Input Data Shareholders' Equity (SE) S1,500,000 Net Income (NI) S850,000 Stock Price (SP) S50 EPS S4 No. of outstanding shares 300,000,000 Goodwill $100,000 Intangibles $75,000 Total Assets $3,000,000 1,500,000 Net Worth Method Net Income Method Price/Earnings Ratio Method Outstanding Shares Method [RpAverage Method Net Income Method 2. Determine, recommend and defend the best corporate evaluation method. Identify any concerns that you have about these methods 3. As a future decision maker concerned about either selling or purchasing companies, explain why is it important to have a reasonable knowledge of what the firm is worth. Besides these methods, what else could a decision maker do to obtain other data points on corporate worth on assets? ACTIVITY: *Determine the cash value of any business using four corporate evaluation methods. The student will: Corporate evaluation methods *explain why is it important to have a reasonable knowledge of what the firm is worth? *apply the problem data to the four corporate evaluation methods *calculate and compile the results for each method *evaluate and explain the results *determine, prioritize, recommend, and defend the best corporate evaluation method (20 points) Complete the following corporate valuation methods (five) based on the following data: Input Data Shareholders' Equity (SE) S1,500,000 Net Income (NI) S850,000 Stock Price (SP) S50 EPS S4 No. of outstanding shares 300,000,000 Goodwill $100,000 Intangibles $75,000 Total Assets $3,000,000 1,500,000 Net Worth Method Net Income Method Price/Earnings Ratio Method Outstanding Shares Method [RpAverage Method Net Income Method 2. Determine, recommend and defend the best corporate evaluation method. Identify any concerns that you have about these methods 3. As a future decision maker concerned about either selling or purchasing companies, explain why is it important to have a reasonable knowledge of what the firm is worth. Besides these methods, what else could a decision maker do to obtain other data points on corporate worth on assets
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