Following are some figures for companies that were acquired by other companies over the last four...
- Following are some figures for companies that were acquired by other companies over the last four years
Equity Value Net Profit
54m 5.6m
76m 8.1m
62m 6.8m
82m 9.2m
41m 3.9m
If the company you are valuing is making $11.4 million as net profit, find the equity value for the company using PE Multiple valuation.
Homework Answers
| P/E | ||||
| 54 | 5.6 | 9.642857 | ||
| 76 | 8.1 | 9.382716 | ||
| 62 | 6.8 | 9.117647 | ||
| 82 | 9.2 | 8.913043 | ||
| 41 | 3.9 | 10.51282 | ||
| Average | 9.513817 | 11.4 | 108.4575 | |
Equity value= 108.4575 Million
Add Answer to:
Following are some figures for companies that were acquired by
other companies over the last four...
What is the valuation using the EBITDA Multiple Method? U LILLIPICS T Jou equity valuation 300...
What is the valuation using the EBITDA Multiple Method?
U LILLIPICS T Jou equity valuation 300 - Equity Valuation Exercise s Enterprises (ticker: BE) is engaged in the business of making athletic shoes a. It pays a dividend of $150 per quarter, some people believe it will stay the same and others believe it will grow by 49 per year. b. Other shoe manufacturers trade in the market for 8.0x EBITDA. c. Other similar companies also trade with a PE...
what is the equity value using the PE Methodolgoy Deals Enter prises Tin equity valuationv FIN300 - Equity Valuation Exercise Bears Enterprises (ticker: BE) is engaged in the business of making a...
what is the equity value using the PE Methodolgoy
Deals Enter prises Tin equity valuationv FIN300 - Equity Valuation Exercise Bears Enterprises (ticker: BE) is engaged in the business of making athletic shoes. a.lt pays a dividend of $150 per quarter, some people believe it will stay the sanne and others believe it will grow by 4% per year b. Other shoe manufacturers trade in the market for 8.0x ERITDA C. Other similar companies also trade with a PE multiple...
8. Nonconstant growth stock Aa Aa As companies evolve, certain factors can drive sudden growth. This...
8. Nonconstant growth stock Aa Aa As companies evolve, certain factors can drive sudden growth. This may lead to a period of nonconstant, or variable, growth. This would cause the expected growth rate to increase or decrease, thereby affecting the valuation model. For companies in such situations, you would refer to the variable, or nonconstant, growth model for the valuation of the company's stock. Consider the case of Portman Industries: Portman Industries just paid a dividend of $1.68 per share....
A company has the following financial information for the last two years: Figures in $million as...
A company has the following financial information for the last two years: Figures in $million as on Dec. 31 2019 Sales $1,200 Oper. Costs (exclud. Dep. & Amort.) $1,020 EBITDA $180 Dep. & Amort. $30 EBIT $150 Interest Expenses $21.70 EBT $128.30 Taxes (@25%) $32.1 Net Income $96.20 Common dividends $79.70 2018 $1,000 $850.00 $150 $25 $125 $20.20 $104.80 $26.20 $78.60 $61.30 Figures in $million as on Dec. 31 2019 2018 Assets: Cash and equivalents Accounts receivable Inventories 10 150...
Use the following information to answer questions 14-16 West Company acquired 60 percent of Solar Company...
Use the following information to answer questions 14-16 West Company acquired 60 percent of Solar Company for $304,500 when Solar’s book value was $404,500. The newly comprised 40 percent noncontrolling interest had an assessed fair value of $203,000. Also at the acquisition date, Solar had a trademark (with a 20-year life) that was undervalued in the financial records by $63,000. Also, patented technology (with a 10-year life) was undervalued by $43,000. Two years later, the following figures are reported by...
Please help me do this if you know, thank you very much and please step by step that makes me bet...
Please help me do this if you know, thank you very much and
please step by step that makes me better understand.
1. Valuation of Firms The private equity firm Greylock Group LLC is looking to sell a stake in the automotive manufacturer VRT Automotive Co, a relatively new entrant in the auto parts manu- facturing industry, via an initial public offering (IPO). Greylock acquired its stake in VRT several years ago and has been able to improve the efficiency...
Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a...
Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $3.7500 dividend at that time (D3-$3.7500) and believes that the dividend will grow by 19.50% for the following two years (D and Ds). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 3.96% per...
7. Stocks that don't pay dividends yet Goodwin Technologies, a relatively young company, has been wildly...
7. Stocks that don't pay dividends yet Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $3.00000 dividend at that time (D₃ = $3.00000) and believes that the dividend will grow by 15.60000% for the following two years (D₄ and D₅). However, after the fifth year, she expects Goodwin’s dividend...
Accounting Methods & Estimates and Their Effects on Net Income Homework Two different companies were organized...
Accounting Methods & Estimates and Their Effects on Net Income Homework Two different companies were organized to sell gee-gaws to the public. Both companies expect this to be a widely used device with increasing Sales each year. With increased enhancements, each year, they expect the sales price per unit to increase each year. Both companies expect to sell 10,000 units, at a selling price of $2,000 each, during their first year of business. Sales are anticipated to increase by 10%...
Accounting Methods & Estimates and Their Effects on Net Income Homework Two different companies were organized...
Accounting Methods & Estimates and Their Effects on Net Income Homework Two different companies were organized to sell gee-gaws to the public. Both companies expect this to be a widely used device with increasing Sales each year. With increased enhancements, each year, they expect the sales price per unit to increase each year. Both companies expect to sell 10,000 units, at a selling price of $2,000 each, during their first year of business. Sales are anticipated to increase by 10%...
What is the valuation using the EBITDA Multiple Method?
U LILLIPICS T Jou equity valuation 300 - Equity Valuation Exercise s Enterprises (ticker: BE) is engaged in the business of making athletic shoes a. It pays a dividend of $150 per quarter, some people believe it will stay the same and others believe it will grow by 49 per year. b. Other shoe manufacturers trade in the market for 8.0x EBITDA. c. Other similar companies also trade with a PE...
what is the equity value using the PE Methodolgoy
Deals Enter prises Tin equity valuationv FIN300 - Equity Valuation Exercise Bears Enterprises (ticker: BE) is engaged in the business of making athletic shoes. a.lt pays a dividend of $150 per quarter, some people believe it will stay the sanne and others believe it will grow by 4% per year b. Other shoe manufacturers trade in the market for 8.0x ERITDA C. Other similar companies also trade with a PE multiple...
8. Nonconstant growth stock Aa Aa As companies evolve, certain factors can drive sudden growth. This may lead to a period of nonconstant, or variable, growth. This would cause the expected growth rate to increase or decrease, thereby affecting the valuation model. For companies in such situations, you would refer to the variable, or nonconstant, growth model for the valuation of the company's stock. Consider the case of Portman Industries: Portman Industries just paid a dividend of $1.68 per share....
A company has the following financial information for the last two years: Figures in $million as on Dec. 31 2019 Sales $1,200 Oper. Costs (exclud. Dep. & Amort.) $1,020 EBITDA $180 Dep. & Amort. $30 EBIT $150 Interest Expenses $21.70 EBT $128.30 Taxes (@25%) $32.1 Net Income $96.20 Common dividends $79.70 2018 $1,000 $850.00 $150 $25 $125 $20.20 $104.80 $26.20 $78.60 $61.30 Figures in $million as on Dec. 31 2019 2018 Assets: Cash and equivalents Accounts receivable Inventories 10 150...
Please help me do this if you know, thank you very much and
please step by step that makes me better understand.
1. Valuation of Firms The private equity firm Greylock Group LLC is looking to sell a stake in the automotive manufacturer VRT Automotive Co, a relatively new entrant in the auto parts manu- facturing industry, via an initial public offering (IPO). Greylock acquired its stake in VRT several years ago and has been able to improve the efficiency...
Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $3.7500 dividend at that time (D3-$3.7500) and believes that the dividend will grow by 19.50% for the following two years (D and Ds). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 3.96% per...
Accounting Methods & Estimates and Their Effects on Net Income Homework Two different companies were organized to sell gee-gaws to the public. Both companies expect this to be a widely used device with increasing Sales each year. With increased enhancements, each year, they expect the sales price per unit to increase each year. Both companies expect to sell 10,000 units, at a selling price of $2,000 each, during their first year of business. Sales are anticipated to increase by 10%...
Accounting Methods & Estimates and Their Effects on Net Income Homework Two different companies were organized to sell gee-gaws to the public. Both companies expect this to be a widely used device with increasing Sales each year. With increased enhancements, each year, they expect the sales price per unit to increase each year. Both companies expect to sell 10,000 units, at a selling price of $2,000 each, during their first year of business. Sales are anticipated to increase by 10%...
Most questions answered within 3 hours.
-
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 10 minutes ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 29 minutes ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 33 minutes ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 1 hour ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 1 hour ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 4 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 5 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 5 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 5 hours ago -
When a metal rod is heated, not only its resistance but also its
length and cross‐sectional...
asked 5 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 5 hours ago -
A manufacturer of banana chips would like to know whether its
bag filling machine works correctly...
asked 5 hours ago