Description
Mayfield Real Estate Development is a company that owns and operates a number of real estate ventures. The company also engages in real estate acquisitions and sales of properties, some of which are properties the company no longer wishes to operate. Similar real estate firms earn a 15-percent rate of return. Mayfield reported the following earnings over the last five years:
ear Operating Income Gain(Loss) on Sale of Assets Net Income
1 $1,000,000 $700,000 $1,700,000
2 $1,500,000 $600,000 $2,100,000
3 $1,100,000 $400,000 $1,500,000
4 $1,600,000 (200,000) $1,400,000
5 $1,800,000 (400,000) $1,400,00
• Prepare a business valuation report for Mayfield Real Estate Development.
• Provide analysis for giving equal weights to the five years of earning data versus giving greater weight to the more recent earning periods (where five is more recent).
• Given the type of industry Mayfield Real Estate Development is in, do you believe 5 years of financial information is sufficient to provide an accurate picture?
Your well-written paper must be 3-4 pages, in addition to title and reference pages. Your paper should be 4-6 pages in length with document and citation.
Cite at least two-peer-reviewed sources, in addition to the required reading for the module.
