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
Chapter14: Distributions To Shareholders: Dividends And Repurchases
Section: Chapter Questions
Problem 2STP
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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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