ABC Corporation ordinary shares have total market value of P4,000,000 and annual revenues of P7,500,000. If these shares are undervalued by P200,000 based on the industry price-revenue, what is its total relative value of a similar firm with revenues of P5,000,000? a. P2,800,000.00 b.P2,666,666.67 c.P3,200,000.00 d.P3,360,000.00

ABC Corporation ordinary shares have total market value of P4,000,000 and annual revenues of P7,500,000. If these shares are undervalued by P200,000 based on the industry price-revenue, what is its total relative value of a similar firm with revenues of P5,000,000? a. P2,800,000.00 b.P2,666,666.67 c.P3,200,000.00 d.P3,360,000.00

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter14: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 2STP

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