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