the current income is 44,940 for the firm. how do i calculate the value of the firm with both scenarios. then value of firm at 10 years. and proportion of ownership in each scenario. scenario b each owner would hold 36.12 of the business.
the growth rate on scenario a is 8 and scenario b is 12
CASE ANAYLSIS Scenario A(1/3 of the Earnings as a Divdend and Reinvest ramainine )/2 ) sumen Net income (FEom aalance sheed) 3 s4,940 Telal Vahe of 1km 12 A B C D Scenario A ( 1/3 of the Earnings as a Dividend and Reinvest remaining 2/3 ) \begin{tabular}{|l|rr|rr|rr} \hline \multicolumn{1}{c|}{ Year } & \multicolumn{2}{c|}{0} & \multicolumn{2}{c|}{1} & \multicolumn{2}{c|}{10} \\ \hline Earnings & $ & 240,000 & $ & 259,200 & $ & 518,142 \\ \hline Dividend Payment & $ & 80,000 & $ & 86,400 & $ & 86,357 \\ \hline Reinvested Amount & $ & 160,000 & $ & 172,800 & $ & 431,785 \\ \hline Dividend Payment per Share & $ & 40,000 & $ & 43,200 & $ & 43,178 \\ \hline Net Worth & $2,000,000 & $2,160,000 & $ & 4,317,850 \\ \hline Market Value of Individuals Holding & $1,250,000 & $1,350,000 & $ & 2,698,656 \\ \hline Market Value Share Price & $ & 625,000 & $ & 675,000 & $ & 1,349,328 \\ \hline Market Value Per Share & $ & 7.81 & $ & 7.81 & $ & 6.25 \\ \hline 2 Current Net Income (From Balance Sheet) & $ & 44,940 & & & & 5 \\ \hline 3 EPS & & & & & & \\ \hline 14 P/E Ratio & & & & & \\ \hline 15 Total Value of Firm & & & & & \\ \hline 16 Net Worth of Each Shareholder & & & & & \\ \hline \end{tabular} CASE ANAYLSIS Scenario A(1/3 of the Earnings as a Divdend and Reinvest ramainine )/2 ) sumen Net income (FEom aalance sheed) 3 s4,940 Telal Vahe of 1km 12 A B C D Scenario A ( 1/3 of the Earnings as a Dividend and Reinvest remaining 2/3 ) \begin{tabular}{|l|rr|rr|rr} \hline \multicolumn{1}{c|}{ Year } & \multicolumn{2}{c|}{0} & \multicolumn{2}{c|}{1} & \multicolumn{2}{c|}{10} \\ \hline Earnings & $ & 240,000 & $ & 259,200 & $ & 518,142 \\ \hline Dividend Payment & $ & 80,000 & $ & 86,400 & $ & 86,357 \\ \hline Reinvested Amount & $ & 160,000 & $ & 172,800 & $ & 431,785 \\ \hline Dividend Payment per Share & $ & 40,000 & $ & 43,200 & $ & 43,178 \\ \hline Net Worth & $2,000,000 & $2,160,000 & $ & 4,317,850 \\ \hline Market Value of Individuals Holding & $1,250,000 & $1,350,000 & $ & 2,698,656 \\ \hline Market Value Share Price & $ & 625,000 & $ & 675,000 & $ & 1,349,328 \\ \hline Market Value Per Share & $ & 7.81 & $ & 7.81 & $ & 6.25 \\ \hline 2 Current Net Income (From Balance Sheet) & $ & 44,940 & & & & 5 \\ \hline 3 EPS & & & & & & \\ \hline 14 P/E Ratio & & & & & \\ \hline 15 Total Value of Firm & & & & & \\ \hline 16 Net Worth of Each Shareholder & & & & & \\ \hline \end{tabular}