VCM Corp
Subject:AccountingPrice: Bought3
VCM Corp. ls considering the acquisition of VCM Co. and the company's ?nancial analyst provided the following information: - The VCM Co. is a company that manufactures processors and micro chips used in creating cellphones and laptops. - The VCM Co. was founded in 2017 and the co-founders sold 25% stake in 2019 for F3.0Mi|lion when the companfs sales revenue is 95.0million. - The VCM C035 Sales Revenue for the past twelve months (annual) stands at P30million with a gross profit ratio of F15.0mil|ion. VCM's annual operating expenses amounted to ?8.0million excluding the depreciation, amortization, interest and taxes. - VCM Co.'s net income is 1'3.0million. - There are three comparable companies that are offered publicly. Their market price per share is P20, 18, and 22. Earnings are ?5.0mil|ion, F4.0mil|ion and P6.5million with an outstanding shares 500,000 shares, 250,000 shares and 400,000 shares, respectively. They all represent less than 25% of the total share capital of each company. Using the guideline public method, how much is the value of the VCM Co.?
