Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Hav co
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- September 3, 2019 at 10:47 am #544454AnonymousInactive
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Sir do you think it is acceptable to value Strand co using their own method?
Captial employed+intangible value.And share price of strand co base on this value.
Because they want to use their method to value their comany.
September 3, 2019 at 2:26 pm #544495No, because the question specifically asks for you to do it on the based on the two different opinions.
Strand is of the opinion that most of its value is in intangible assets but it goes on to say that therefore the premium should based on the PV to infinity of the after tax excess………
September 4, 2019 at 12:18 am #544629AnonymousInactive- Topics: 51
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For last part of qurstion, It was asking whether it is acceptable for strand co. They wouldnt know what PE is for their company because PE value was base on Hav co’s opinion. But PE was used for firm valuation.
So wouldnt it correct to value strand co using calculated intangible method for firm valuation?
September 4, 2019 at 1:30 am #544632AnonymousInactive- Topics: 51
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What i meant was
Strand co value is intangible calculated + capital employed = strand co valueSeptember 4, 2019 at 12:05 pm #544691Yes – that would be OK 🙂
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