Catcher wishes to make a takeover bid for the shares of an unquoted…

Question Answered step-by-step Catcher wishes to make a takeover bid for the shares of an unquoted… Catcher wishes to make a takeover bid for the shares of an unquoted company, Julyfly. The earnings of Julyfly over the past five years have been as follows. 2006$50,0002009$71,0002007$72,0002010$75,0002008$68,000   The average P/E ratio of quoted companies in the industry in which Julyfly operates is 10. Quoted companies which are similar in many respects to Julyfly are: Bumblebee, which has a P/E ratio of 15, but is a company with very good growth prospects. (b) Wasp, which has had a poor profit record for several years and has a P/E ratio of 7. What would be a suitable range of valuations for the shares of Julyfly using the Price earnings ratio method? (10 Marks) Accounting Business Financial Accounting MBA 125 Share QuestionEmailCopy link Comments (0)