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do P/E Analysis based on the ff
The board of company XYZ have discussed the possibility of the acquisition of ABC. ABC is a company operating in Kenya, and the board is able to purchase 40% of the company for 300 million Kenyan Shillings. ABC is in the tourism industry and achieved a before tax profit of 60 million Kenyan Shillings in the last financial year (representing a 5% growth in profits compared to the prior year). Except for a 5 million Shillings depreciation charge, the rest of the profits are cash based.
This forum is for you to ask about difficulties that you have, not for you to ask me to write answers to questions that you have found.
I have no idea what you mean by ‘do P/E Analysis based on the ff’.
There is not enough information given anyway to be able to calculate PE ratios, and it is certainly not a Paper F2 question!
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