Business Valuations

Q1. Which of the forthcomingcited is the set-right formula for Communicate Capitalization? (MCQ)Previous distribute figure × Number of conclusiond distributesCurrent distribute figure × Number of conclusiond distributesPrevious distribute figure × Number of conclusiond sensuality distributesCurrent distribute figure × Number of conclusiond equivalent distributes(2 marks) Q2. Statements abandoned under recite to asset-grounded valuation for equity. Select divert types of asset-grounded valuation. (HA)Historic Consume Values are largely suited BOOK VALUE NET REALISABLE VALUE REPLACEMENT BASISMaximum Consume to be hired for possessions by a buyer BOOK VALUE NET REALISABLE VALUE REPLACEMENT BASISAsset Stripping BOOK VALUE NET REALISABLE VALUE REPLACEMENT BASIS(2 marks) Q3. Abandoned under is abridgment of Vento Co.'s counteract sheet: Assets $m Financed by $mNon-vulgar possessions 8 $1 Plain distributes 1Net-vulgar possessions 4 Reserves 6- - Hypothecation voices 5Total 12 12Non-vulgar possessions enclose Bulldozer which consume $7m when it was purchased five years ago when it had a available spirit of ten years. The sodality's backbiting device is on a straight-line foundation. These possessions were considerd $2m by a functional. What is the consider per distribute using NRV foundation? (MCQ) $5$5.25$5.5$5.75(2 marks) Q4. Aftercited statements recite to asset-grounded valuation. (HA) It ignores insensible possessions DRAWBACK USEFULNESSIt ignores currency progresss from the possessions DRAWBACK USEFULNESSTo set a minimum figure in an accident of a takeover DRAWBACK USEFULNESS(2 marks) Q5. A Target sodality's dividend per distribute is $0.3/distribute ; its opponent has a dividend render of 8%. Calculate the target sodality's distribute figure? (FIB)4114804699000$ (2 marks) Q6. Dosed Co has an hues render of 17%. Calculate the consider of the Dosed Co. grounded on the give consider of the expected hues? Using the forthcomingcited advice abandoned under: (MCQ)Year 1 2 3 4Earnings ($m) 3.4 3.9 4.1 4.5$26.47m$45.9m$62.5m$68.625m(2 marks) Q7. Cato Co. has been disclosed for precept and it vulgarly has hues of $3.5m and has 1 pet distributes in conclusion & Cato Co. has a vulgar distribute figure of $11 in the communicate. Calculate the hues render of Xerox Co, a profit in the identical diligence sector? (MCQ)3.5%11%31.8%35.3%(2 marks) Q8. VV Co. has figure/hues appurtenancy of 15 and it's diligence opponent Kato Co. has an hues render of 20%. If conjectured, a distribute figure of $1. When comparing VV Co. to Kato Co, which of the forthcomingcited is set-right? (HA)Earnings Render HIGHER LOWERPrice/Earnings Appurtenancy HIGHER LOWER(2 marks) Q9. Ivo Co has made an tender to buy two of its whole three distributes of Rico Co. Due to this merger, there is a luck that earning forthcoming conclusion of tax procure extendth by $10m per year. Assuming that Ivo Co distribute figure extendths by $0.5 forthcoming its merger and Ivo conclusions new distributes as importance. What procure be the figure/hues appurtenancy of the assembly using the forthcomingcited advice to unswerving two decimal places? (FIB)Ivo Co. Rico Co.Profit forthcoming Tax $150 $40Market Distribute Prices $2.5 $1.2Number of distributes 200m 60m901702476500(2 marks) Q10. Which TWO of the forthcomingcited are the problems relative-to to Price/ Hues appurtenancy? (MRQ)Quoted companies after a while homogeneous profit activities are unamenable to findNot conducive for those who do not promote paying dividends Represents unadorned consumeListed sodality's important constituency capability disagree from unlisted sodality's(2 marks) Q11. Yugo Co is acquiring Lotto Co. Yugo Co consume of compensation at the season of acquiring Lotto Co.'s 20,000 distributes procure be $400,000. The currency progresss are as follows: Year 20X3 20X4 20X5 20X6Cash progress ($) 170,000 235,000 200,000 85,000The weighted middle consume of important for the sodality is 10%. Calculate the distribute figure of Lotto Co using discounted currency progress? (MCQ)$7.5$7.84$8.20$8.61(2 marks) Q12. Hath Co. has a advenient dividend forecast: In the vulgar year and the primeval year, there procure be no dividend hired. In year two a dividend of $0.36/distribute procure be hired. In year three a dividend of $0.75/distribute procure be hired and it procure extend at 2% whole year. If the consume of equity is 8% what procure be Hath Co. vulgar distribute figure to the unswerving $? (FIB)3613152286000$ (2 marks) Q13. Bitola Co is financed using equity merely. The sodality has fair hired the dividend of $80m and the hues retained and invested were 55%. The bombardment income 27% and consume of equity is 18%. What is the communicate consider of the sodality? (MCQ)$2,917m$3,023m$3,487m$3,716m(2 marks) Q14. Dividend extendth design takes frequent assumptions into recital. Select the assumptions from the abandoned statements? (MRQ)The considers of advenient dividends and the consume of important are accurateAll investors are homogenous Influential factors of the communicate are incorporated in the distribute figure The dividend extend continually or not extend at all (2 marks) Q15. Which of the forthcomingcited statements is a hindrance for dividend extendth design? (MCQ)The extendth admonish in the communicate is similar to the extendth used in dividend extendth design The consume of equity used is an consider of a important asset pricing designThe way is conducive to all companies level if they don't procure dividendsThe dividends hired by the sodality are perennial (2 marks) Q16. A established has an conclusion 15% sensuality distributes after a while a formal consider of $1 each. Currently, the claimd render of sensuality distributeholders is 25%. The strengthening tax is 30%. What is the consider of a sensuality distribute? (FIB)3714753873500P0 (2 marks)144653070104000 Q17. Jorum Co has conclusiond lost hypothecation voices after a while a coupon admonish of 8%. If the claimd render of investors is 2%, what is the vulgar communicate consider of the liability? (FIB)Market Consider ($) (2 marks) Q18. B4U Co. has 11% retrievable ties in conclusion having a consume of liability of 16% precedently tax. The tax admonish in the communicate is 27%. If the ties are redeemed in six years' season at a recompense of 6% over the par consider. Calculate the communicate consider of the tie? (MCQ)$69.35$76.12$84$103.2(2 marks) Q19. Curry has in conclusion 12% ties after a while sum formal consider $100,000 and a sum indemnification consider $90,000, after a while profit payable quarterly. The consume of liability on the ties is 12% year-by-year. The ties are retrievable on 31st March 20X2 and it is now 31st December 20X0. Calculate the communicate consider? (FIB)14770102159000Market Consider ($) (2 marks) Q20. A 6% retrievable hypothecation voice in Voltage Co is due to grown in immodest years' season at a recompense of 10%. It can be converted into 15 plain distributes at the identical season. Voltage Co pays a tax admonish of 25%. Its vulgar distribute figure is $4.65 and extendth is expected at 8%. If the distributeholders claim 10% render what is the communicate consider? (MCQ)$51$75.13$94.15$110(2 marks)