You are trying to value equity per share in Simran Holdings, a steel company with a 20% holding in Selvan Stores (accounted for as a minority holding) and a 60% holding of Hamron Toys (fully consolidated). You are given the following valuations for operating assets and net debt in each company. Simran Consolidated: Value of Operating Assets = $10,000 Net Debt = $5,000 Selvan Stores: Value of Operating Assets = $5,000 Net Debt = $- Hamron Toys: Value of Operating Assets = $6,000 Net Debt = $2,000 If Simran has 200 million shares outstanding, estimate the value per share. A. $22 B. $25 C. $30 D. $38 E. $72
You are trying to value equity per share in Simran Holdings, a steel company with a 20% holding in Selvan Stores (accounted for as a minority holding) and a 60% holding of Hamron Toys (fully consolidated). You are given the following valuations for operating assets and net debt in each company. Simran Consolidated: Value of Operating Assets = $10,000 Net Debt = $5,000 Selvan Stores: Value of Operating Assets = $5,000 Net Debt = $- Hamron Toys: Value of Operating Assets = $6,000 Net Debt = $2,000 If Simran has 200 million shares outstanding, estimate the value per share. A. $22 B. $25 C. $30 D. $38 E. $72
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
Problem 1PS
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You are trying to value equity per share in Simran Holdings, a steel company with a 20% holding in Selvan Stores (accounted for as a minority holding) and a 60% holding of Hamron Toys (fully consolidated). You are given the following valuations for operating assets and net debt in each company.
Simran Consolidated:
Value of Operating Assets = $10,000
Net Debt = $5,000
Selvan Stores:
Value of Operating Assets = $5,000
Net Debt = $-
Hamron Toys:
Value of Operating Assets = $6,000
Net Debt = $2,000
If Simran has 200 million shares outstanding, estimate the value per share.
A. $22
B. $25
C. $30
D. $38
E. $72
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