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Mars Inc. for the last 12 months has the following financial information: Balance sheet Total Liabilities - Php 9,000,000 Income statement Sales - Php 20,000,000

Mars Inc. for the last 12 months has the following financial information:

Balance sheet Total Liabilities - Php 9,000,000

Income statement Sales - Php 20,000,000 Gross Profit - Php 5,000,000 OPEX - Php 2,000,000

Financial Ratios Debt to equity ratio - 3:1 Dividend yield ratio - 10% Dividend pay-out ratio - 0.20:1

Baron Family, inc. is planning to sell 20% of its business and would like to calculate the value of its business using various valuation methods.

How much is the value of 20% of the business using Dividend Paying Capacity?

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