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asset based valuation - examplek and k company limited is planning to absorb three other companies so as to realize its sales records of sh500 000
example of asset based valuationextracted information from the books of kent limited current liabilitiesbank overdraft sh300000
asset based valuation this method acquires into account the entire business along with reference to its assets and then divides the resultant
example of dividend basis valuationcompany laxmi synthetics pays a dividend of 10 on its sh60 par value ordinary shares this company uses a
dividend basis valuationownership of shares in entities - the owner to obtain a cash flow consisting of future dividends and the value of a share
earnings method or earning basis valuationby using the earning valuation method a company will employ its pe ratio to value its sharespe
bases of share valuationshare valuation can be done on the basis of income and asset values on the basis of income still a share will be entitled to
valuation of sharea number of parties are interested however in the value of shares and securities and that will includecompany shareholders vendors
valuation of securitiesthe previous methods were perfect for valuing the entire business however it is also essential to ascertain the value of part
price earnings ratio valuationpe ratio is traditionally employed for valuation of shares however it is an important ratio in the valuation of
example of earnings yield valuationestimated maintainable earnings are pound240000 per annum rate of return required is 25 percentcalculate the value
earnings yield valuationey is given via the earnings made with the business expressed like a percentage of the market price of the business that
earning method - bases of valuationthe business is valued according to the net stream of income it is expected to create over its
example of theoretical valueas a result of the purchase of an asset the income stream will rise by of pound1000 per annum for 25 years by
valuation of businessa business may be valued for different type of reasons that as for merger acquisition or takeover or liquidation or outright
example of replacement of assetsestate developers purchased a machine five years ago on a cost of pound7500 the machine had a probable economic
pbp reciprocalpbp expresses the profitability of a project in terms of years it does not indicate any return as measure of investment the pbp
comparison between modern and traditional methods both modern and traditional methods will indicate or show strong weaknesses which like a company
advantages and disadvantage of profitability indexadvantages of profitability indexa simple to understand and utilizeb the part of npv in the venture
example of npv value a company is faced along with the following five 5 investment opportunities as costnpvpi total pv
profitability index or pipi benefit-cost ratio present value of inflows present value of cash outlaywhether pi is greater than 10 invest and
advantagesand disadvantages of irradvantages of irrit seems time value of moneyit seems cash flows over the whole life of the projectit is compatible
acceptance rule of irrirr will accept a venture if its irr is higher than or equivalent to the minimum required rate of return such is usually the
trial and error methoda select any rate of interest on random and employ it to compute npv of cash inflowsb if rate selected produces npv lower than
irr or internal rate of returnthis method is a discounted cash flow technique that uses the principle of npv it is described as the rate such