Business valuation - BSOP model

There is not normally a proxy for Pe. I cannot give you a general answer - you will have to refer to a specific past exam question.

ok sorry about that. In jun10 Q2 - AggroChem Co. For the value of Pe the examiner has calculated the PV of a zero coupon bond with same yield as the current debt $3000M*1.08^-5 = $2.04176M In Book - Eg $100 debt at carrying 5% interest, 5 years to maturity, the company's cost of debt is 8% The PV of the redemption value and interest for 5 years has been calculated giving a total of $88.08. Then the value of Pe = 88.08*1.08^5 = $129.42 I am a bit confused about these 2 calculations Thank you for your answer

In both cases, the MV is the PV of the future receipts. In Aggrochem, the question told you to do it for a zero coupon bond, so in that question the interest each year is zero.

ok Thank you Sir. ;-)

You are welcome :-)