Varun Dawar & Peal SeCare exited ngaist cach question in parenthesis associate wih CLSA securities was et nthe task of estimating the equi ded deploy residual income valuation methodology nance company by explicitly forecesting resis sncome he decided to assume termina valu sulatioa of estimation QU: Raj Stara, cup valor of NNB hous mating the fair uity val for « period of next 6 years (2018. Galcolaon using fair value estimate of of) ‘The financials of NNB Housing Hank and some otlcr joof NNBhonsing 2023), For years beyond 2023, $f erewth rate (clearly show assumptions of eae ‘important ascumptions used by Raj are peste ihe iacome Total Revenue EXPENSES Cost of Macias Consuuned Tmployee benefits expense Finaicecoss| Depreciation and amortization pense ‘Other expenses Trofit Before Tax ss Tax 1,067 eoit After Tax 2.489 Weighied average number of egity shares oustanding (n crores) 200 Fangs pe bare (EPS) 124 Dividend per Share 2.TTrerease of 30% es at Revenues —__— simian Reve Ti bof Revenves sila t© 2012 — Cost of materia consumed 2 en 201 —= a Tacs alla 62017 | Dividend payout aio | Risk Free HERP (equity Rise premio) — Bea fandamental equity value por share foe NC Housing esing resis Assuming yourself asa, find out he ion methodclony. (20 Maris) (Q2: The Pain! Business bas thiceIrge poblily held fis: Rhora Lt, India Ld. and Soadesh Lak Te ‘dition to these publicly held ims, Newone L1d is the largest privately held frm inthe industry. Assume that in comiag mosth, your invesimeni-benking firm is considering whether to approach the 1p ‘management of Bharat Ltd. with «proposal wo consider acquiring Newoue Lud, which owns over 3,500 pulls inthe county, AS a preliminary step inthe evaluation of the possile aequisidon, you have assembled a team of analysts 1o prepare a preliminary aalyss of acquisition price muliples that might be ‘vamranfed based upoa eartent martes comiitions. The analyst team wen back 1o work iouneilately and compiled following ot of Fsancial information aad potential vluatioa rtios Financial laformationls Cr) | Bharal Ltd, | India Ltd. | Swadesh Lad, 72000 | —-Ho0a0 | S900 | AED] TIRE a8 1130.00 ea | 17162 Mole | se2ad 205.89 TS aie 730 Tas] 12000 360.00 1720.00 ~~ 7909‘ping Mares Tixpcied Gomis in PSSA Tang iE Foran Reuire (a) on tis above intra EO APS rage of eerie wae for Newone LA te tect neat ENS PR AS fbr be ne a stnks) Suet ro ge fr Nes a ih ee see! “ Maks) 7 (98 sg tow fai of oma Heevon Li, calcu do Following the year 2017 “cath wt Fir (CET) Fr he yor 2017 fre reemgs Cost of Capita (ACC) forte yea" 2017 for he year 2017 capital forte year 2017 sina gv ate for the yea 2017