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Total Liabilities - Php 9,000,000.0 ncome Statement Sales - Php 20,000,000.00

Total Liabilities - Php 9,000,000.0 ncome Statement Sales - Php 20,000,000.00

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Nos. 8 to following financial information: Baron Family, Inc. for the last 12 months has the Balance Sheet Total Liabilities - Php 9,000,000.00 Income Statement Sales - Php 20,000,000.00 Gross Profit - Php 5,000,000.00 OPEX - Php 2,000,000.00 Financial Ratios Debt to Equity Ratio - 3:1 Dividend Yield Ratio - 10% Dividend Pay-out Ratio - 0.20:1 Baron Family, Inc. is planning to sell 20% of its business and would like to calculate the value of its business using various valuation methods. 8. How much is the value of 20% of the business using Book Value Method? a. Php,800,000.00 b. Php 9,000,000.00 c. Php 600,000.00 d. Php 3,000,000.00 9. How much is the value of 20% of the business using Dividend Paying Capacity? a. Php 6,000,000.00 b. Php 1,200,000.00 c. Php 600,000.00 d. Php 900,000.00 10. How much is the value of 20% of the business using Multiples of Eaming Valuation Method assuming appropriate multiplier of 1.5? a. Php 4,500,000.00 b. Php 1,200,000.00 c. Php 600,000.00 d. Php 900,000.00
Transcribed Image Text:Nos. 8 to following financial information: Baron Family, Inc. for the last 12 months has the Balance Sheet Total Liabilities - Php 9,000,000.00 Income Statement Sales - Php 20,000,000.00 Gross Profit - Php 5,000,000.00 OPEX - Php 2,000,000.00 Financial Ratios Debt to Equity Ratio - 3:1 Dividend Yield Ratio - 10% Dividend Pay-out Ratio - 0.20:1 Baron Family, Inc. is planning to sell 20% of its business and would like to calculate the value of its business using various valuation methods. 8. How much is the value of 20% of the business using Book Value Method? a. Php,800,000.00 b. Php 9,000,000.00 c. Php 600,000.00 d. Php 3,000,000.00 9. How much is the value of 20% of the business using Dividend Paying Capacity? a. Php 6,000,000.00 b. Php 1,200,000.00 c. Php 600,000.00 d. Php 900,000.00 10. How much is the value of 20% of the business using Multiples of Eaming Valuation Method assuming appropriate multiplier of 1.5? a. Php 4,500,000.00 b. Php 1,200,000.00 c. Php 600,000.00 d. Php 900,000.00
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