Drama, Film, and Mass Communication homework help
Hi I need held to define bussines valuation for below case Second Simple Case! ° CEO Deviesa Corp. plans to accept an investor offer to become one of the shareholders in deviesa corp. Investorswant a 20% shareholding. The investor asks the CEO about how much it would cost to get 20% ownership – The CEO asks you as a Controller to calculate how much business value from Deviesa Corp. The Controllercommunicates to the CEO about the business performance embodied in the Income Statement and the Balance Sheet as a basis for calculating the business value ° Controllers discuss with CFO. 000, and CMO to perform business value calculations. In the discussion agreed on Several things as follows: 1. The 5-year planning period beginning in 201? – 2021 and the Continuity Period begins in 2022 2. The expected growth is 5% in the planning period and 3% in the continuity period 3. Cost of Capital 12%4. Income Tax 25% ‘ Controllers and CFOs also agreed to use the Sales percentage method in projecting cash flow from assets- The CEO is not satisfied with the result of business value calculation deviesa corp based on businessperformance last year. The CEO believes that joining new investors will improve business performance. The investor has a business that supplies raw materials of deviesa corp *- Controllers coordinate with COOS to calculate thepotential enhancement of business performance.Some deals are generated: 1. Cost of Sales can be reduced 10% 2. General expenses can be reduced by 5% 3. Potential Growth 6% in planning period – After performing business value calculations.Controller prepares presentation of calculationsbased on existing and potential businessperformance which will be presented at nextweek’s meeting. If agreed by the investor, whatprice should be paid by investor to control 20%shares. But when the investor otters the price. whatis the minimum price to be paid by the investor BUS in 355 Performance standard LL: i_.:_i. 2016 cash USS 75account receivable USS 125inventories USS 250fixed assetsUS$300 accumulated depreciationUSE-500 not fixed assets$51300 account payabieshort temn debtUS$ 50 long term debtcommon stock1 US$ 350 retained earning