Chapter 8 Valuation of Acquisitions and Mergers

The industry sector average Market to Book ratio for the industry of X plc is 4.024. The book value of X plc is $3,706m and it has 1,500m shares in issue. Required: Calculate the predicted share . price. Solution: Predicted value of X plc = $3,706 × 4.024 = $14,912.94m. Predicted share price = $14,912.94m / 1,500m = 994.2c 3.5. Free cash flow ... ................
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