Question
Value the shares of Delta Co. using the price per revenue multiplier method based on the data of its competitors, Alpha, Beta, and Gamma. Delta's
Value the shares of Delta Co. using the price per revenue multiplier method based on the data of its competitors, Alpha, Beta, and Gamma.
Delta's revenues are $ 31m and it has 13m shares outstanding.
| Alpha Co. | Beta Co. | Gamma Co. | |
| Revenues (m) | 2124 | 4264 | 560 |
| # shares outstanding (m) | 588 | 369 | 170 |
| stock price | 297 | 367 | 30 |
Provide your answer rounded to two decimals.
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Managerial Accounting Creating Value in a Dynamic Business Environment
Authors: Ronald Hilton, David Platt
10th edition
78025664, 978-0078025662
