Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bizcomps' transaction database revealed a median price to sales ratio of 1.75 that was comparable to the subject interest. The subject interest had normalized revenue

Bizcomps' transaction database revealed a median price to sales ratio of 1.75 that was comparable to the subject interest. The subject interest had normalized revenue of $250,000, normalized gross profit of $175,000, cash of $85,000, real estate valued at $500,000, fixed assets valued at $300,000, and debt of $55,000. Using this information, calculate the value of a 100 percent interest in the equity of the subject company.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ethical Issues In Business A Philosophical Approach

Authors: Thomas Donaldson, Patricia H. Werhane, Margaret Cording

7th Edition

0130923877, 978-0130923875

More Books

Students also viewed these Accounting questions