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Compute the market value of equity

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Reference no: EM133157621

Question - Make the following Assumptions:

Tangible Asset Value = 16,200,000

Required Return on Tangile Assets = 16%

Required Return on Equity = 24%

Forecast Net Income for next period (year) = 4,800,000

Capitalization Rate for Excess earnings to compute Intangible Asset Value = 30%

Current Market Value of Interest Bearing Liabilities = 12,000,000

Required - Compute the Market Value of Equity using the Excess Earnings Approach?

Reference no: EM133157621

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