Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Business Valuations Extracts from the financial statements of Bluebell Co, a listed company, are as follows: $m Profit before interest and tax 238 Finance costs
Business Valuations Extracts from the financial statements of Bluebell Co, a listed company, are as follows: $m Profit before interest and tax 238 Finance costs _(24) Profit before tax Corporation tax Profit after tax 214 (64) 150 $m Assets Non-current assets Property, plant and equipment Goodwill internally generated) 768 105 873 Current assets Inventories Trade receivables 285 192 477 1,350 Total assets 688 250 Equity and liabilities Total equity Non-current liabilities Long-term borrowings Current liabilities Trade payables Short-term borrowings Total current liabilities Total liabilities Total equity and liabilities 312 100 412 662 1,350 Bluebell Co has a cost of capital of 10% A similar size PUBLIC competitor company has a the following Price/Earnings ratio of 12-5 times Dividend Yield of 8% Earnings yield of 12% Dividend paid out of 25 cent Dividend growth of 6% A 25% adjustment for the valuation of Private Companies should be made. This information relates to questions 1-5 Question 1 (1 point) What is the Estimated value of Bluebell Co on a net realisable value basis? $365.8m $1,027-8m $470-8m $688.Om Question 2 (1 point) What is the Estimated value of Bluebell Co using the earnings yield method? $1,875m $1,250m $975m $937.5m Question 3 (1 point) What is the Estimated Value of one Bluebell company share using the Dividend yield method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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