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ABC Corporation ordinary shares have total market value of P4,000,000 and annual revenues of P7,500,000. If these shares are undervalued by P200,000 based on the industry price-revenue, what is its total relative value of a similar firm with revenues of P5,000,000?  a. P2,800,000.00  b.P2,666,666.67   c.P3,200,000.00  d.P3,360,000.00

ABC Corporation ordinary shares have total market value of P4,000,000 and annual revenues of P7,500,000. If these shares are undervalued by P200,000 based on the industry price-revenue, what is its total relative value of a similar firm with revenues of P5,000,000?  a. P2,800,000.00  b.P2,666,666.67   c.P3,200,000.00  d.P3,360,000.00

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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ABC Corporation ordinary shares have total market value of P4,000,000 and annual revenues of P7,500,000. If these shares are undervalued by P200,000 based on the industry price-revenue, what is its total relative value of a similar firm with revenues of P5,000,000? 

a. P2,800,000.00 
b.P2,666,666.67  
c.P3,200,000.00 
d.P3,360,000.00 

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