Question
After the initial rounds of research, you set up a meet with the current owners of the company to understand their sentiment towards this buy-out.
After the initial rounds of research, you set up a meet with the current owners of the company to understand their sentiment towards this buy-out. In the discussion, the owners mentioned the selling price of the company as Rs 5,00,000 Lakhs. Use the discounted cash flow method to calculate the value of equity and arrive at a decision of buyo-buy. If it's a no-buy, quote the maximum possible amount that you would be willing to pay to acquire the company. (5 marks) What would be the share price if there are 1 Crore shares of the Green Energy Company in the market? (1 mark)
Current Assets Non-Current Assets Total Assets (in Lakhs) Cash Accounts receievables Supplies Other current assets Long-term receivables Other assets Plant and equipment BALANCE SHEET 3042 24701 18958 1272 40790 10332 247101 Current Liabilities |Non-Current liabilities Equity Liabilities (in Lakhs) 346196 Total Loans payable Accounts payable Taxes payable Long term debt Deferred income tax liabilities Other long term obligations Stocks Other income 17258 37268 2612 40810 27244 22476 191794 6734 346196 INCOME STATEMENT (in Lakhs) Revenue Cost of goods sold Production Administrative expenses Depreciation Operating income Interest Tax Net Income 290212 -191586 -36682 -11480 -18745 31719 -766 -10113 20840Step by Step Solution
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