umber of the que .HBB Company for the last ten years, has earned and had cash flows of about Php 500,000 every year. As per the predictions of the company's earnings, the same cash flow would continue for the foreseeable future, The expenses for the business every year is about Php 100,000 ohly. Based on the available públic information a Php 4 million Treasury bond has a prevailing return of Php 400,000 annually. Using Capitalization of Earnings approach, what is the value of HBB Company?

umber of the que .HBB Company for the last ten years, has earned and had cash flows of about Php 500,000 every year. As per the predictions of the company's earnings, the same cash flow would continue for the foreseeable future, The expenses for the business every year is about Php 100,000 ohly. Based on the available públic information a Php 4 million Treasury bond has a prevailing return of Php 400,000 annually. Using Capitalization of Earnings approach, what is the value of HBB Company?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter5: Evaluating Operating And Financial Performance

Section: Chapter Questions

Problem 5EP

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