Using the following information for Walnut Ltd , Calculate the value per share using the Asset based method .
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Using the following information for Walnut Ltd , Calculate the value per share using the Asset based method .
|
|
£m |
£m |
|
Non Current Assets |
|
180 |
|
Current Assets |
75 |
|
|
|
|
|
|
Current Liabilities |
(25) |
50 |
|
|
|
230 |
|
Financed by: |
|
|
|
Ordinary Shares (25p) |
|
138 |
|
Reserves |
|
32 |
|
8% Loan notes |
|
60 |
|
|
|
230 |
|
|
|
|
The disposal value of the fixed assets is estimated at £130m and the realisable value of current assets is estimated at £35m. Recent profit after tax is £27m and a sector P/E ratio is 12
Group of answer choices
31p per share
64p per share
14.5p per share
25p per share
Step by step
Solved in 3 steps
- The following are extracts from the financial statements of Captus Ltd. As at 31 March: 2021 2020 Sh.’000’ Sh.’000’ Sh.’000’ Sh.’000’ Fixed assets: Goodwill Freehold land and building Plant and machinery (NBV) Investment at cost Current assets: Stocks Accounts receivable Investments Cash at hand and bank Current liabilities Bank overdraft Accounts payable Proposed dividends Taxation Net current assets 15% debentures Capital and reserves: Authorised, issued and paid Sh.10 Ordinary shares Share premium Revaluation reserve Retained profit 10,050 6,140 1,710 200 18,100 (2,390) (5,850) (450) (820) (9,510) 2,800 16,800 5,860 3,600 29,060 8,590 37,650 (7,500) 30,150 18,000 1,500 4,500 6,150 8,700 7,800 840 430 17,770 (6,540) (5,250) (380) (600) (12,770) 2,900 12,000 6,350 3,750 25,000 5,000 30,000 (9,000) 21,000 15,000 750 -…Bombay Company's book and market value balance sheets are as follows: (NWC = net working capital; LTA = long term assets; D = debt; E = equity; V = firm value): Book Values Market Values NWC 200 500 D NWC 200 500 D LTA 2,300 2,00 E LTA 2,800 2,500 E 2,500 2,500 V 3,000 3,000 V According to MM's Proposition I corrected for taxes, what will be the change in company value if Bombay issues $200 of equity and uses it to make a permanent reduction in the company's debt? Assume a 21 percent marginal corporate tax rate. Multiple Choice A) +$70 B) −$42 C) $0 D) +$140 Please show your workThe statement of financial position of KY Limited at 31 December 2019 shows the following. Non-current assets GH₵ 1,350,000; current assets GH₵ 140,000; ordinary share capital GH₵ 900,000; general reserve GH₵ 150,000; 10% debentures GH₵ 200,000; current liabilities GH₵ 90,000; retained earnings GH₵ 150,000 The profit from operations for the year was GH₵ 65 000 and the finance costs were GH₵ 20 000. What is the return on capital employed for 2019?
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- The market capitalization of Abutia Plc as at 31 December 2018 was GHC21 million. The stated capital of the company consists of 10 million ordinary shares . The profit after tax for the year ended 31 December 2018 was GHC 2.8 million . The dividend pay-out rate for the year was 80%.Calculate the Price –earning ratio of Abutia PlcNelson Company's current liabilities are P50,000, its long-term liabilities are P150,000, and its working capital is P80,000. If Nelson Company's debt-to-equity ratio is 0.32, its total long-term assets must equal O P625,000 O P825,000 O P745,000 O P695.000 Hydro Cable wishes to calculate their return on assets (ROA). You know that the return on equity (ROE) is 12% and that the debt ratio is 40%. What is the ROA? 0 4.8% O 20% 0 7.2% O 12% Tech Manufacturing Company realized P15,000,000 in sales, with a cost of goods sold of P6,000,000, gross profit margin of 45% of net sales, operating expenses of P4,500,000, tax rate of 35%, and average total assets of P6,500,000. What is Tech's Return on Assets (ROA)? O 42.5% O 50% O 45% O 47.75%The board of directors of LuvMe Publishing Haus has commissioned a capital structure study. The company has a total assets of P59 million. It has earnings before interest and taxes (EBIT) of P9.0 million and is taxed at 25%. The stock has a book value of P25 per share. Additional information follows: Percentage of Debt Cost of Debt Required Rate of Return 0% 0% 10.0% 20% 8.5% 10.9% 30% 9.5% 11.5% 60% 15.0% 16.5% Based on the above information using the debt ratio given, prepare the schedule to answer the following: Earnings per share (EPS) Return on Equity (ROE) Price - Earnings ratio
- The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions): Fair Value, Dec. 31 Equity Investments Cost 2021 2022 A Corporation shares $ 50 $ 29 N/A B Corporation shares 65 65 $ 67 C Corporation shares 30 N/A 29 D Industries shares 60 61 65 Totals $ 205 $ 155 $ 161 Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation shares on June 1, 2022, for $30 million. On September 12, it purchased the C Corporation shares. Required:1. What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlon’s 2022 pretax earnings?2. At what amount should Harlon's securities equity investment portfolio be reported in its 2022 balance sheet? (For all requirements, enter your answers in millions, (i.e., 10,000,000 should be entered…he following is an extract from the trial balance of Tempo Ltd on 30 June 2022:£Land and buildings 114 000Equipment 210 000Investment (80 000 shares of £1 each in Rhythm Ltd at cost price) 650 000Inventory (30/6/2008 - £382 000) 418 000Trade receivables (30/6/2021 – £180 000) 206 000Cash and cash equivalents 92 000Share capital:Ordinary share capital including premium 450 000Preference share capital 200 000Retained earnings:Balance – beginning of year 160 000Retained profit for the year 40 00012% Long term loan 420 000Trade payables (30/6/2021 – £190 000) 210 000Tax payable 110 000Dividends payable 100 000Additional information:1. Issued share capital:- 400 000 ordinary shares of £1 each- 40 000 10% preference shares of £5 each.2. Gross profit for the year amounted to £1 344 000 and represents 40% of turnover for the year.3. All sales and all purchases are on credit.4. Income from investment for the year amounted to £24 000.5. The dividends payable represents the total amount of…From the data given, compute the goodwill or gain from bargain purchase for the different items. If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct, indirect and stock issue costs of P75,000, P50,000 and P40,000 respective. What is the amount of GOODWILL?
