Q No.2: Statement of Financial position for Aroma Corporation is given below for the period ending Dec 31 2020 abilities and Equity 32 Cash Bank Accounts Presaid Assets Inventaries 66 121 250 Accounts Payble Accruals Salaries Payble 211 63 54 Total Current 560 328 Total Current abilites Land Building 179 187 189 Long term Bonds Prefered Stock Retained Earning 356 Common Eosity 190 90 03 al Total Assets 935 935 *All values given in '000 $ Other Information: PAT = 320 EBIDTA=428 Ri= 5% Rm=15% Geared Beta of Aroma's Industry is 1.3 (Preferred stocks are considered as debt financing) Profit Margin and Market Share of Aroma Corporation are constantly declining for last 3 years and various options are being discussed at board level for getting into a new venture with a fresh Brand Name and better product Quality and shut down the operations in existing wame. A competitor has also offered to acquire operations of Aroma Corporation. On the other hand a group of investors still believe that company has potential to grow due to its old customer base which are quite satisfied by the offered services and are ready to inject more debt in the company Analyst to CFO has gathered below information to be used in strategic Planning Cost of Debt = 15% Tax Rate = 25% For coming 5 Years there isn't any chance of growth in Market share and profit but after 5 years a constant growth of 9% is expected. Future Cashflow for a period of 5 Years: YES 1 2 3 4 5- Terminal Cash Flow's 106 121 100 112 100 CEO has advised to have a concrete information about company's value and a suggestion of using various range of company's value is given by Finance director Required: You, as a Financial strategist will be leading the presentation in next Board meeting and you are required to calculate Value of Aroma Corporation with following methods: 1. Asset Based Valuation (2.5 Marks] 2. Earning Based Valuation (2.5 Marks] 3. Caslflow Based Valuation [2.5 Marks] 4. You are also expected to explain silent features of these 3 methods. [2.5 Marks]