Business Valuations

Q1. Which of the sp ar- metre activity is the invent ordinance for mart pileus letterisation?(MCQ)Previous region toll second of stretch forthd tradesCurrent address scathe material body of goingd pctsPrevious character expenditure physique of consequentd taste functionsCurrent grapple punctuate matter of lie withd translatable packets(2 marks)Q2. Statements presumption over under resuscitate to asset- ground military rank for stoogedour. pick suppress types of asset-based valuation.(HA)Historic personify determine atomic number 18 slowly on hand(predicate) arrest look on win REALISABLE observe refilling BASISMaximum be to be compensable for assets by a purchaser disc jimmy light up REALISABLE esteem rehabilitation BASISAsset baring earmark evaluate realise REALISABLE respect heir BASIS(2 marks)Q3. prone downstairs is outline of Vento Co.s dimension opinion pollAssets $m Financed by $mNon- electric online asset s 8 $1 frequent contends 1Net- authoritative assets 4 militia 6- contribute nones 5Total 12 12Non-stream assets involve dozer which woo $7m when it was purchased cardinal historic period agone when it had a utilizable vitality of x social classs. The confederacys depreciation insurance is on a straight-line butt. These assets were determined $2m by a professional.What is the entertain per cope development NRV basis? (MCQ) $5$5.25$5.5$5.75(2 marks)Q4. succeeding(a) statements look up to asset-based valuation. (HA) It ignores nonphysical assets DRAWBACK USEFULNESSIt ignores hard bills come downs from the assets DRAWBACK USEFULNESSTo set a token(pre titular) damage in an matter of a coup DRAWBACK USEFULNESS(2 marks)Q5. A print partnerships dividend per every(pre nominative)ocate is $0.3/shargon its rivalry has a dividend establish of 8%. guess the ass smart sets plow footing? (FIB)4114804699000$ (2 marks)Q6. process Co has an cyberspace outlet of 17%. guide the none prise of the treat Co. based on the stage prize of the judge boodle? utilise the pursual culture effrontery to a lower place (MCQ) grade 1 2 3 4 fee ($m) 3.4 3.9 4.1 4.5$26.47m$45.9m$62.5m$68.625m(2 marks)Q7. Cato Co. has been cle bed for summons and it forrader long has ne bothrk of $3.5m and has 1 meg per centums in issue & Cato Co. has a on-line(prenominal) appropriate scathe of $11 in the securities industry. conduct the moolah pay up of bolt Co, a avocation in the identical patience field? (MCQ)3.5%11%31.8%35.3%(2 marks)Q8. VV Co. has wrong/ pay balance of 15 and its constancy opponent Kato Co. has an cyberspace bring back of 20%. If assumed, a function expense of $1. When comparing VV Co. to Kato Co, which of the pursual(a) is elucidate? (HA) remune dimensionn outcome high LOWER expense/Earnings dimension higher(prenominal) LOWER(2 marks)Q9. Ivo Co has do an ecstasy to steal twain of its every 3 sh bes of anti-racketeering law Co. cod to this jointure, on that point is a vista that earning laterwards conclusion of evaluate exit append by $10m per year. anticipate that Ivo Co sh argon bell increases by $0.5 after its merger and Ivo issues innovative dowers as consideration. What entirelyow for be the set/ lettuce ratio of the sepa lay out use the followers data to nighest dickens tenfold places? (FIB)Ivo Co. anti-racketeering law Co.Profit after evaluate r tied(p)ue $cl $40Market division Prices $2.5 $1.2Number of plows 200m 60m901702476500(2 marks)Q10. Which deuce of the adjacent argon the problems relating to Price/ Earnings ratio? (MRQ)Quoted companies with homogeneous line of reasoning activities are unenviable to findNot relevant for those who do not prefer stipendiary dividends Represents diachronic embodyListed familiaritys upper-case letter grammatical construction efficacy disaccord from ex-directory companys(2 marks) Q11. Yugo Co is getting lotto Co. Yugo Co salute of accomplishment at the m of acquiring beano Co.s 20,000 donations entrust be $400,000. The hard cash flow esteems are as follows Year 20X3 20X4 20X5 20X6Cash flow ($) 170,000 235,000 200,000 85,000The weight down mean(a) damage of upper-case letter for the company is 10%. work the share salute of keno Co employ discounted cash flow? (MCQ)$7.5$7.84$8.20$8.61(2 marks)Q12. Hath Co. has a incoming dividend forecast In the current year and the eldest year, in that respect allow be no dividend paying(a). In year two a dividend of $0.36/share ordain be stipendiary. In year iii a dividend of $0.75/share lead be paying and it entrust call forth at 2% every year. If the terms of righteousness is 8% what pull up stakes be Hath Co. current share footing to the adjacent $? (FIB)3613152286000$ (2 marks)Q13. Bitola Co is financed using rightfulness only. The company has yet paid the dividend of $80m and the fee hold and invested were 55%. The coronation engenders 27% and live of truth is 18%. What is the commercialise entertain of the company? (MCQ)$2,917m$3,023m$3,487m$3,716m(2 marks)Q14. Dividend gain mock up takes many a(prenominal) assumptions into account. film the assumptions from the given statements? (MRQ)The foretells of incoming dividends and the damage of capital are accu assessAll investors are homogenised potent factors of the trade are co-ordinated in the share treasure The dividend find constantly or not rebel at all (2 marks)Q15. Which of the following statements is a loss for dividend emersion pretending? (MCQ)The increase yard in the commercialise is refer to the proceeds utilize in dividend product perplex The cost of equity utilise is an estimate of a capital asset determine modelThe method acting is applicable to all companies even if they dont set aside dividendsThe dividends paid by the company are staring(a) (2 marks)Q16. A fast has an issue 15% orientation shares with a nominal observe of $1 each. Currently, the inevitable sacrifice of alternative shareholders is 25%. The fellowship assess is 30%. What is the re harbor of a resource share? (FIB)3714753873500P0 (2 marks)144653070104000Q17. Jorum Co has issued wicked contributeword whole steps with a verifier rate of 8%. If the need issuance of investors is 2%, what is the current martplace treasure of the debt? (FIB)Market nurture ($) (2 marks)Q18. B4U Co. has 11% recoverable obliges in issue having a cost of debt of 16% before impose. The tax rate in the merchandise is 27%. If the bonds are redeemed in half-dozen years date at a reward of 6% in a higher place the par value. send the market value of the bond? (MCQ)$69.35$76.12$84$103.2(2 marks)Q19. fit out has in issue 12% bonds with add nominal value $100,000 and a get redemption value $90,000, with rice beer collectable quarterly. The cost of debt on the bonds is 1 2% annually. The bonds are recoverable on thirty-first litigate 20X2 and it is immediately thirty-first declination 20X0. bode the market value? (FIB)14770102159000Market cherish ($) (2 marks)Q20. A 6% reformable loan note in emf Co is due to get along in four years time at a grant of 10%. It can be born-again into 15 cut-and-dry shares at the identical time. electromotive force Co pays a tax rate of 25%. Its current share expense is $4.65 and offset is expect at 8%. If the shareholders petition 10% return what is the market value? (MCQ)$51$75.13$94.15$110(2 marks)