An acquiring firm is considering buying Toronto Tailors Inc.(TT).The sales, income statement, capital, and valuation ratios information for TT is provided below.Using this information, estimate the value of TT's equity:
a)using the industry averages for the first five valuation ratios presented below
b)using the five-year averages for TT for the first five valuation ratios presented below
c)using the forward P/E ratio based on the following assumptions:
8% is a reasonable cost of equity for TT;
TT maintains its present dividend payout ratio; and
TT's earnings and dividends grow at an annual rate of 5 percent indefinitely

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The Answer of An acquiring firm is considering buying Toronto Tailors Inc.(TT).The sales, income statement, capital, and valuation ratios information for TT is provided below.Using this information, estimate the value of TT's equity:
a)using the industry averages for the first five valuation ratios presented below
b)using the five-year averages for TT for the first five valuation ratios presented below
c)using the forward P/E ratio based on the following assumptions:
8% is a reasonable cost of equity for TT;
TT maintains its present dividend payout ratio; and
TT's earnings and dividends grow at an annual rate of 5 percent indefinitely

An Acquiring Firm Is Considering Buying Toronto Tailors Inc