Cyber Monday 2024! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Free Preparation Discussions
MENU
CIMA Exam CIMAPRA19-F03-1 Topic 7 Question 45 Discussion
Actual exam question for
CIMA's
CIMAPRA19-F03-1 exam
Question #: 45
Topic #: 7
[All CIMAPRA19-F03-1 Questions]
Topic #: 7
Company P is a largeunlisted food-processing company.
Its currentprofitbefore interest and taxationis$4 million, which it expects to be maintainablein the future.
It has a $10 million long-termloan on which it pays interest of 10%.
Corporate tax ispaid at the rate of 20%.
The following information on P/E multiples is available:
Which of the following is the best indication of theequityvalue of Company P?
Suggested Answer:
D
Currently there are no comments in this discussion, be the first to comment!