Homework Answers
a. The theoretical values must be averaged to calculate the “chopshop” value of the firm, so we need to calculate the theoretical values
Calculation of the “Theoretical Value” for Cavos, Inc., Using Market Capitalization Ratios
VALUE BASED ON MARKET CAPITALIZATION/SALES
| Business Segment | Market Capitalization /Sales (A) | Segment Sales (B) | Theoretical Market Value A*B |
| Sunglasses distribution | 0.80 | $2200 | $1760 |
| Reading glass distribution | 1.20 | $1000 | $1200 |
| Technical products | 1.20 | $3500 | $4200 |
| Total | $7160 |
VALUE BASED ON MARKET CAPITALIZATION/ASSETS
| Business Segment | Market Capitalization /Assets (A) | Segment Assets (B) | Theoretical Market Value A*B |
| Sunglasses distribution | 1 | $600 | $600 |
| Reading glass distribution | 0.90 | $700 | $630 |
| Technical products | 1.1 | $5000 | $5500 |
| Total | $6730 |
VALUE BASED ON MARKET CAPITALIZATION/INCOME
| Business Segment | Market Capitalization /Income (A) | Segment Income (B) | Theoretical Market Value A*B |
| Sunglasses distribution | 8 | $200 | $1600 |
| Reading glass distribution | 10 | $150 | $1500 |
| Technical products | 12 | $500 | $6000 |
| Total | $9100 |
The theoretical values must be averaged to calculate the “chopshop” value of the firm, so the value of firm is equal to
(value based on sales + value based on assets + value based on income)/ 3
= ($7160000+ $6730000+$9100000)/3 =$7,663,333
b) The WrongWay Inc. is selling higher than its chop-shop value—$10,000,000 compared with $7,663,333.
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2 question (30%) Using the chop-shop method, determine a value for Wrongway Inc., whose common stock...
2 Question (30%) | Using the chop-shop approach, assign a value for the Calvert Corporation, where...
2 Question (30%) | Using the chop-shop approach, assign a value for the Calvert Corporation, where its common stock is currently trading at a total market price of S5 million. For Calvert, the account- ing data set forth two business segments: auto sales and auto specialties. Data for the firm's two segments are as follows SEGMENT SALES ($000) $3,000 SEGMENT ASSETS ($000) $1,000 3,000 $4,000 SEGMENT NCOME (s000) $150 500 $650 BUSINESSs SEGMENT Auto sales Auto specialties Total 2,500 $5,500...
Using the chop-shop approach, assign a value for the Calvert Corporation, where its common stock is...
Using the chop-shop approach, assign a value for the Calvert Corporation, where its common stock is currently trading at a total market price of SS million. For Calvert, the account- ing data set forth rwo business segments: auto sales and auto specialties. Data for the firm's two segments are as follows BUSINESS SEGMENT Auto sales Auto specialties Total SEGMENT SALES ($000) $3,000 SEGMENT ASSETS ($000) $1,000 3,000 $4,000 SEGMENT NCOME (5000) $150 2,500 SS,500 500 $650 Industry data for "pure-play...
Required: 1. What is the amount of Apple’s accounts receivable as of September 30, 2017? 2....
Required:
1. What is the amount of Apple’s accounts
receivable as of September 30, 2017?
2. Compute Apple’s accounts receivable turnover as
of September 30, 2017.
3. How long does it take, on average, for
the company to collect receivables for fiscal year ended September
30, 2017?
4. Apple’s most liquid assets include (a)
cash and cash equivalents, (b) short-term marketable
securities, (c) accounts receivable, and (d)
inventory. Compute the percentage that these liquid assets (in
total) make up of...
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JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
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JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
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JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
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CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
Please use own words. Thank you. CASE QUESTIONS AND DISCUSSION > Analyze and discuss the questions...
Please use own words. Thank you.
CASE QUESTIONS AND DISCUSSION > Analyze and discuss the questions listed below in specific detail. A minimum of 4 pages is required; ensure that you answer all questions completely Case Questions Who are the main players (name and position)? What business (es) and industry or industries is the company in? What are the issues and problems facing the company? (Sort them by importance and urgency.) What are the characteristics of the environment in which...
2 Question (30%) | Using the chop-shop approach, assign a value for the Calvert Corporation, where its common stock is currently trading at a total market price of S5 million. For Calvert, the account- ing data set forth two business segments: auto sales and auto specialties. Data for the firm's two segments are as follows SEGMENT SALES ($000) $3,000 SEGMENT ASSETS ($000) $1,000 3,000 $4,000 SEGMENT NCOME (s000) $150 500 $650 BUSINESSs SEGMENT Auto sales Auto specialties Total 2,500 $5,500...
Using the chop-shop approach, assign a value for the Calvert Corporation, where its common stock is currently trading at a total market price of SS million. For Calvert, the account- ing data set forth rwo business segments: auto sales and auto specialties. Data for the firm's two segments are as follows BUSINESS SEGMENT Auto sales Auto specialties Total SEGMENT SALES ($000) $3,000 SEGMENT ASSETS ($000) $1,000 3,000 $4,000 SEGMENT NCOME (5000) $150 2,500 SS,500 500 $650 Industry data for "pure-play...
Required:
1. What is the amount of Apple’s accounts
receivable as of September 30, 2017?
2. Compute Apple’s accounts receivable turnover as
of September 30, 2017.
3. How long does it take, on average, for
the company to collect receivables for fiscal year ended September
30, 2017?
4. Apple’s most liquid assets include (a)
cash and cash equivalents, (b) short-term marketable
securities, (c) accounts receivable, and (d)
inventory. Compute the percentage that these liquid assets (in
total) make up of...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
Please use own words. Thank you.
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