Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the information in the following table and assuming profit margin ratio and retention rate are expected to remain stable, calculate The forward price-sales multiple

Using the information in the following table and assuming profit margin ratio and retention rate are expected to remain stable, calculate

  1. The forward price-sales multiple (20 marks)
  2. The trailing price-sales multiple (20 marks)
  3. The forward price-earnings multiple (20 marks)
  4. The trailing price-earnings multiple (20 marks)
  5. The trailing price-book value multiple (20 marks).

Value for 2019

In $M

Revenue from Sales

400

Statutory (loss)/profit before income tax expense and finance costs

204

Statutory (loss)/profit before income tax expense

47

Income tax benefit/(expense)

(11)

Statutory (loss)/profit for the year

36

Depreciation and amortisation

1,450

Payments for property, plant and equipment and intangible assets

(1,247)

Proceeds from borrowings

846

Repayment of borrowings

(1,494)

Dividend paid

10

Total current assets

5,245

Total current liabilities

6,370

Total assets

20,200

Total equity

5,954

Cost of equity

5%

WACC

4.5%

Growth rate of sales and dividends

3%

Show calculations!

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

Preliminary Audit Results Montanas State Employee Compensation 1990

Authors: Waters Consulting Group, Montana. State Employee Compensation Committee

1st Edition

1378152700, 978-1378152706

More Books

Students also viewed these Accounting questions

Question

Give the proper formula for each diatomic element.

Answered: 1 week ago