“A business that makes nothing but money is a poor business”
After reading this chapter, you will be able to:
Understand the concept of business valuation.
Understand valuation using historic cost methods and the dividend growth model.
Discuss the residual income method, the relative valuation method and the discounted cash flow method of valuation.
Understand the economic value added (EVA) concept of valuation.
FINANCE IN PRACTICE
The bidding process among four public-sector undertakings (PSUs) for gaining 35.58 per cent of equity of IBP Co. Limited—the first national oil company—ended on 31 January 2002. The government kept on changing preconditions for bidders as soon as the ...