Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION TWO (6 Marks) You are thinking of merging or acquisition of a public traded pharmaceutical company with 150,000,000 ordinary share with a current market

QUESTION TWO (6 Marks)

You are thinking of merging or acquisition of a public traded pharmaceutical company with 150,000,000 ordinary share with a current market value of Tshs. 23. At the same time, Non-current Assets and the Net current Assets is Tshs. 1,146,000,000.00 and Tshs. 243,956,600.00 respectively. However the long-term liabilities 364,004,000.00 while the expected annual projected earnings for the year will be Tshs. 102,000,000 with distributable earnings of Tshs. 56,000,000.00. As a Multinational Financial Manager, Calculate the following

  1. Stock market valuation (1 Marks)
  2. Net Asset Value (Book Value) (1 Marks)
  3. Capitalized Earning Value (1 Marks)
  4. Price Earning Ration (1 Marks)
  5. Provide recommendations to merge or acquire with adequate explanation based on the above computations (2 Marks)

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

More Books

Students also viewed these Finance questions