Question
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.
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 distributed earnings of Tshs. 56,000,000.00. As a Multinational Financial Manager, Calculate the following:
- Stock market valuation
- Net Asset Value (Book Value)
- Capitalized Earning Value
- Price Earning Ration
Provide recommendations to merge or acquire with adequate explanation based on the computations.
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International Financial Reporting and Analysis
Authors: David Alexander, Anne Britton, Ann Jorissen
5th edition
978-1408032282, 1408032287, 978-1408075012
