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Trk St wants to buy Kyrgyz Milk. The relevant data is below. Using the purchasing power parity, determine the purchase price of Kyrgyz Milk
Trk St wants to buy Kyrgyz Milk. The relevant data is below. Using the purchasing power parity, determine the purchase price of Kyrgyz Milk in Turkish liras. Company name Last year Kyrgyz Milk 2023 Net sales 3.500.0 EBIT (1-t) 125.0 Depreciation 250.0 Net working capital investment (40,0) Fixed asset investment (75.0) Assumed growth rate of residual value 5.0% Excess return period 5 Cost of capital (discount rate) 15.00% Present value of financial debts 2,000,0 Number of shares (millions) 2.0 Spot rate (b/com) 3.5 Average expected inflation rate in Turkey 6.00% Average expected inflation rate in Kyrgyzstan 15.00% EBIT(1-v)/Net sales 3.6% Depreciation/Net sales 7.5% Net working capital/Net sales 1.0% Fixed asset investment/Net sales 2.5%
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