You Own 25% of Unique Vacations SA

question 22

Multiple Choice

You own 25% of Unique Vacations SA.You have decided to retire and want to sell your shares in this closely held, all equity firm.The other shareholders have agreed to have the firm borrow €1.5 million to purchase your 1,000 shares.
What is the total value of this firm today if you ignore taxes?

• A)€4.8 million
• B)€5.1 million
• C)€5.4 million
• D)€5.7 million
• E)€6.0 million

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Definitions:

Customer Allowance

A reduction in the selling price of goods or services, often granted to rectify complaints or fulfill contractual agreement terms.

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt early payment or promote sales.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenues.

Sales Discounts

A promotional strategy where the seller reduces the price of products or services to attract more customers or encourage quick payment.