BUSF_A01.qxd

Chapter 16 • Small businesses l The business will obtain a listing on the Stock Exchange. This may be a possibility, particularl ...

Sources of finance family-type businesses and/or those established as a result of management buy-outs and buy-ins. AIM has prove ...

Chapter 16 • Small businesses 16.8 Valuation of small businesses The existence of an apparently efficient market for the securit ...

Valuation The following points should be noted on using the dividend yield approach in practice: l The difficulty of finding a l ...

Chapter 16 • Small businesses Clearly, most of the points that apply to the dividend yield approach also apply to this one. The ...

Gearing The calculation in Example 16.3 was based on the book values of the assets and liabilities. It need not be done on this ...

Chapter 16 • Small businesses 16.10 Dividends Much of what is true concerning dividends in the context of large businesses also ...

Summary than larger ones. Similarly this is likely to be caused by relative bargaining power. Small businesses, typically buying ...

Chapter 16 • Small businesses lBusiness sold to another business. lBusiness obtains a listing on the Stock Exchange or Alternati ...

Relevant websites 4 Economic value: Discounts future estimated cash flows to the shareholders. Theoretically the most sound app ...

Chapter 16 • Small businesses 16.1 What recent business trend is tending to promote the establishment and expansion of small, sp ...

Problems Balance sheet as at 31 December last year £m Non-current assets 50.67 Current assets 121.55 Total assets 172.22 Equity ...

Chapter 16 • Small businesses Balance sheet as at the end of last year £m £m Non-current assets Freehold land and buildings at c ...

Problems The average of listed businesses in the industry for dividend yield is 7 per cent and the average of their price/earnin ...

Chapter 16 • Small businesses (b) Suggest a suitable price per share for each of the following possible transactions: (i) The pu ...

Problems Balance sheet as at 30 September last year £m Tangible non-current assets 21.1 Current assets 15.2 Total assets 36.3 Eq ...

Chapter 16 • Small businesses There are sets of multiple-choice questionsand missing-word questionsavailable on the website. The ...

Present value table Present value of £1 in nyears at discount rate r. Years Discount rate (r) Years (n) 1% 2% 3% 4% 5% 6% 7% 8% ...

Annuity table Present value of £1 receivable at the end of each year for nyears at discount rate r. Years Discount rate (r) Year ...

Suggested answers to review questions 1.1 Reasons for the popularity of the limited company include the following: l Number of p ...