Questions 4 Question 1. Consider the following information relating to three companies, which are similar to Tasty Foods Ltd Jumbo Foods Ltd Fresh Foods Ltd Natural Foods Ltd Price/EBDITA 20 19 Price/Book Value 3 4 22 22 Price/Sales 3 5 The EBDITA of Tasty Foods is 220 lacs, Book value is 275 lacs and Sales are 500 lacs. It may be assumed that the average ratios of the three companies are suitable for Tasty Foods. Estimate the value of Tasty Foods Ltd based on the above information.

Questions 4 Question 1. Consider the following information relating to three companies, which are similar to Tasty Foods Ltd Jumbo Foods Ltd Fresh Foods Ltd Natural Foods Ltd Price/EBDITA 20 19 Price/Book Value 3 4 22 22 Price/Sales 3 5 The EBDITA of Tasty Foods is 220 lacs, Book value is 275 lacs and Sales are 500 lacs. It may be assumed that the average ratios of the three companies are suitable for Tasty Foods. Estimate the value of Tasty Foods Ltd based on the above information.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.4E

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