Dec 2011 BAR Co

is this alternative solution acceptable?

P/E 16.67

New interest $3.6 m

Current ROE = 19.29%

Assuming ROE stays constant,

new Profit after tax is $29.9m (19,29% *155) and the EPS then becomes 29.9/75=0.40

old EPS is 0.45

TERP is 7.2. On the basis of Constant PE and the new EPS, new MPPS is $6.7

which is lower than the TERP. so issuing rights will not be recommended.

rest solution remains the same.

Many thanks in Advance 🙂