The Valuation of Bondi Inc. and Its Franchised Restaurants
Introduction
Valuation of Bondi Inc.
Bondi Inc. has a total value of $150 million. This value represents the combined worth of all the businesses and assets owned by the holding company.Valuation of Pizza Hut Franchises
The Pizza Hut Franchises, owned by Bondi Inc., are valued at $70 million. This valuation reflects the market worth of the Pizza Hut restaurants under Bondi's ownership.Question
If the value of Bondi is $150 million, and the Pizza Hut Franchises are worth $70 million, then what is the value of the Kentucky Fried Chicken Franchises?Answer
Value of Kentucky Fried Chicken Franchises = $80 millionExplanation:
Given that the value of Bondi Inc. is $150 million and the value of Pizza Hut Franchises is $70 million, we can determine the value of Kentucky Fried Chicken Franchises using the formula: Value of Kentucky Fried Chicken = Value of Bondi - Value of Pizza Hut Substituting the given values: Value of Kentucky Fried Chicken = $150 million - $70 million Value of Kentucky Fried Chicken = $80 millionSuppose that Bondi Inc. is a holding company that owns both Pizza Hut and Kentucky Fried Chicken Franchised Restaurants. If the value of Bondi is $150 million, and the Pizza Hut Franchises are worth $70 million, then what is the value of the Kentucky Fried Chicken Franchises?
Value of Kentucky Fried Chicken Franchises = $80 million Explanation: given data value of Bondi = $150 million, value of Pizza Hut = $70 million, Solution: We get here the value of Kentucky Fried Chicken using the formula: Value of Kentucky Fried Chicken = Value of Bondi - Value of Pizza Hut. Substituting the values, we find that the value of Kentucky Fried Chicken Franchises is $80 million.