Total Liabilities - Php 9,000,000.0 ncome Statement Sales - Php 20,000,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Nos. 8 to
following financial information:
Baron Family, Inc. for the last 12 months has the
Balance Sheet
Total Liabilities - Php 9,000,000.00
Income Statement
Sales - Php 20,000,000.00
Gross Profit - Php 5,000,000.00
OPEX - Php 2,000,000.00
Financial Ratios
Debt to Equity Ratio - 3:1
Dividend Yield Ratio - 10%
Dividend Pay-out Ratio - 0.20:1
Baron Family, Inc. is planning to sell 20% of its business and would
like to calculate the value of its business using various valuation
methods.
8. How much is the value of 20% of the business using Book Value
Method?
a. Php,800,000.00
b. Php 9,000,000.00
c. Php 600,000.00
d. Php 3,000,000.00
9. How much is the value of 20% of the business using Dividend
Paying Capacity?
a. Php 6,000,000.00
b. Php 1,200,000.00
c. Php 600,000.00
d. Php 900,000.00
10. How much is the value of 20% of the business using Multiples
of Eaming Valuation Method assuming appropriate multiplier of
1.5?
a. Php 4,500,000.00
b. Php 1,200,000.00
c. Php 600,000.00
d. Php 900,000.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad8e9105-b7e5-400a-b946-a07209d2bdc7%2Fbb53fd31-fd5a-4e09-9a5c-9c1d0d8657bc%2Fepke9za_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Nos. 8 to
following financial information:
Baron Family, Inc. for the last 12 months has the
Balance Sheet
Total Liabilities - Php 9,000,000.00
Income Statement
Sales - Php 20,000,000.00
Gross Profit - Php 5,000,000.00
OPEX - Php 2,000,000.00
Financial Ratios
Debt to Equity Ratio - 3:1
Dividend Yield Ratio - 10%
Dividend Pay-out Ratio - 0.20:1
Baron Family, Inc. is planning to sell 20% of its business and would
like to calculate the value of its business using various valuation
methods.
8. How much is the value of 20% of the business using Book Value
Method?
a. Php,800,000.00
b. Php 9,000,000.00
c. Php 600,000.00
d. Php 3,000,000.00
9. How much is the value of 20% of the business using Dividend
Paying Capacity?
a. Php 6,000,000.00
b. Php 1,200,000.00
c. Php 600,000.00
d. Php 900,000.00
10. How much is the value of 20% of the business using Multiples
of Eaming Valuation Method assuming appropriate multiplier of
1.5?
a. Php 4,500,000.00
b. Php 1,200,000.00
c. Php 600,000.00
d. Php 900,000.00
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