TEST 4 SYLLABUS (BUSINESS VALUATION & MERGERS ACQUISITIONS CHAPTER 17 & 18 OF ICAP STUDY TEXT)

T.MARKS= 27 BFD TIME: 1 HOUR

Required:
a) Estimates the value of Besserlot Ltd using
i. Asset based valuation
ii. PE ratios
iii. Dividend based valuation
iv. Free cash flows to equity method
Discuss the potential accuracy of each of the methods used and recommend,
with reasons, a value, or range of values that Stanzial might bid for Besserlot.
State clearly any assumptions that you make. Approximately 16 marks are available for
calculations and 11 marks for discussion.(27 marks)