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Use the following information to answer question 17 and 18. Chisasa Group is...
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Use the following information to answer question 17 and 18.
Chisasa Group is analysing the potential acquisition of Tanaka Inc. To support this analysis, Chisasa has gathered the following data on Tanaka with all figures expressed in millions of rands.
|
2024
|
2023
|
2022
|
2021
|
Net income
|
–R26.00
|
R34.00
|
R18.00
|
R26.00
|
FCFE
|
–R1.00
|
–R23.00
|
R14.00
|
–R15.00
|
FCFF
|
R3.00
|
R4.00
|
R6.00
|
R8.00
|
Residual income
|
–R29.00
|
R30.00
|
R12.00
|
R22.00
|
Debt-to-equity
|
93%
|
91%
|
78%
|
84%
|
The most appropriate model for valuing Tanaka Inc is the …
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