Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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

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

Quantitative Analysis for Management

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha

12th edition

133507335, 978-0133507331

More Books

Students also viewed these Finance questions