Problem 1It is now 2024. You have been assigned as a financial advisor of a Philippine start-up company They assigned you to value itsexisting business had they exited the market 6 years ago, meaning in 2018. Details of the company are as follows:Futher assume that the company will nat exist beyond 2023, meaning the going concem principle will not apply.Also assume that the client wants you to use the dividend discount model for this project.20186,458,000.020197,412,000.020208,126,000.020228,941,000.0 9.457.000.042.0%28.0%30.0%20212023SalesVariable expensesFixed expensesTax Rate10,025,000.040.0%30.0%44.0%30.0%30.0%38.0%40.0%41.0%30.0%29.0%21.0%31.0%25.0%24.0%25.0%After conducting a financial due diligence, you found that:1.) 2019 sales are inclusive of a 250.000 sales invoice that were in transit as of EOY 2019, thus delivered to the client on 2020, with terms of FOB Shipping Point.2.) 2020 sales excluded a contract signed for senvices worth 1,200,000. Contract is dated December 11, 2020, total cash was paid outright.but services will be rendered starting 2021. Contract is for a one year term only.3.) 2020 internal audt findings revealed that 175,000 warth of sales invoice were backdated (aniginal date is January 15, 2021) to boost 2020 sales.4.) 257,000 worth of 2019 sales were revealed as window dressed sales (sales invoice dated January 22, 2020).5.) 2018 sales are inclusive of a 450,000 cash collection of a previously written off account6) 2018 sales (considered consolidated unless otherwise stated) are inclusive of a 354,000 Hame Office Sale to Branch X7.) 2019-2021 office supplies were expensed initially, as part of variable expenses. No adjustments were made. Details of the EOY office supplies on hand are as follows.201920202021Office Supplies56,450.062, 157.075,154.0

The question states that the year is 2024. The startup company had exited the business in 2018. Had…

Problem 1 It is now 2024 You have been assigned as a financial advisor of a Philippine start-up company They assigned you to value its existing business had they exited the market 6 years ago, meaning in 2018. Details of the company are as follows: Funther assume that the company will nat exist beyond 2023, meaning the going concem principle will not apply.

Problem 1 It is now 2024 You have been assigned as a financial advisor of a Philippine start-up company They assigned you to value its existing business had they exited the market 6 years ago, meaning in 2018. Details of the company are as follows: Funther assume that the company will nat exist beyond 2023, meaning the going concem principle will not apply.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter16: Financial Planning And Forecasting

Section: Chapter Questions

Problem 3P: AFN EQUATION Refer to Problem 16-1 and assume that the company had 3 million in assets at the end of...

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A reputable company plans to place an investment with a private equity firm with an amount of Php 10M for 2023. Considering all the risks involved, the prevailing discount rate is 12% and with a revenue stream/dividends below: 2023 2024 2025 2026 2027 2028 2029 995,000.00 1,380,000.00 1,575,000.00 1,930,000.00 2,954,000.00 3,408,644.00 6,354,941.00 Find the NPV.
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