Assignment 7 Business Valuation – Break Up Value Approach Using the Chop – Shop approach (or Break-up Value Approach), assign a value for Cranberry Ltd whose stock is current trading at a total Market...


Assignment 7




Business Valuation – Break Up Value Approach



Using the Chop – Shop approach (or Break-up Value Approach), assign a value for Cranberry Ltd whose stock is current trading at a total Market Price of € 4 million. For Cranberry Ltd, the accounting data set forth three business segments: Consumer Wholesale Retail and General Centers, Data for The Firm’s three segments are as follows –



















Business Segment




Segment Sales




Segment Assets




Segment Operating Income




Wholesale



Retail



General




€ 2,25,000



€ 7,20,000



€ 25,00,000




€ 6,00,000



€ 5,00,000



€ 40,00,000




€ 75,000



€ 1,50,000



€ 7,00,000







Industry data for “Pure – Play” Firms have been compiled and are summarized as follows-



















Business Segment




Capitalization / Sales




Capitalization / Assets




Capitalization / Operating Income




Wholesale



Retail



General




1.85



.20



1.80




0.30



0.70



0.45




7.00



3.00



2.00







Jun 04, 2022
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