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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Hav co
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.
No, 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………
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?
What i meant was
Strand co value is intangible calculated + capital employed = strand co value
Yes – that would be OK 🙂
