Homework Answers
Enterprise Value = Value of Debt + Value of Equity - Value of
Cash
$90.00 million = $20.00 million + Value of Equity - $2.00
million
Value of Equity = $72.00 million
Price per Share = Value of Equity / Number of Shares
Outstanding
Price per Share = $72.00 million / 15.00 million
Price per Share = $4.80
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RA 4.5 Homework • Unanswered A company's enterprise value is $90 million. If it has $20...
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Question 10 Homework. Unanswered A T-bond with semi-annual coupons has a coupon rate of 7%, face value of $1,000, and 2 years to maturity. If its yield to maturity is 5%, what is its Macaulay Duration? Answer in years, rounded to three decimal places. Numeric Answer: 1.898 1.898 You are incorrect -------------- Answered - Incorrect 1 attempt left. Change your responses to resubmit
Question 3 Homework. Unanswered You own a bond portfolio worth $51,000. You estimate that your portfolio...
Question 3 Homework. Unanswered You own a bond portfolio worth $51,000. You estimate that your portfolio has an average YTM of 5.9% and a Modified Duration of 14 years. If your portfolio's average YTM were to decrease by 4 basis points, how much would the value of your portfolio change? Round to the nearest cent. (Hint: Answer is positive if the portfolio value increases and negative if the value decreases] Numeric Answer: Unanswered 3 attempts left Submit Question 4 Homework....
please help me answer those questions 1. 2 You estimate that a company's enterprise value is...
please help me answer those questions
1.
2
You estimate that a company's enterprise value is $ 70 million. If it has $10 million debt outstanding, $2 million in cash, and there are 5 million shares outstanding, what's the estimated stock price? Round to the nearest cent. Numeric Answer: A company is projected to generate free cash flows of $10 million per year for the next two years, followed by a stable growth of 2.5% per year in perpetuity. The...
Labor demand Homework. Unanswered Consider the following data taken from a Florida orange grove (farm) where...
Labor demand Homework. Unanswered Consider the following data taken from a Florida orange grove (farm) where the price of oranges is $4.00 per bushel and the price per worker is $3000 (per month). What would be a correct guess how how many workers would be hired by the farm? Workers Output (bushels 400 1600 2600 3400 4000 4400 4600 Numeric Answer: 4 You are incorrect Answered - Incorrect 2 attempts left. Change your responses to resubmit
You estimate that a company's enterprise value is $189 million. If it has $66 million debt,...
You estimate that a company's enterprise value is $189 million. If it has $66 million debt, $12 million in cash, and there are 11 million shares outstanding, what should be its stock price? Round to one decimal place.
Question 5 Homework. Unanswered A bond with a $1,000 face value has a 6% annual coupon...
Question 5 Homework. Unanswered A bond with a $1,000 face value has a 6% annual coupon rate. The bond matures in 19 years. The current YTM on the bond is 4.5%. If this bonds' YTM were to increase to 5.9%, what would be the resulting price change in dollar terms? Round to the nearest cent. [Hint: 1) If the price drops, the change is a negative number. 2) Calculate the precise impact of a yield change on the bond's price...
1. 2 You are valuing Soda City Inc. It has $100 million of debt, $90 million...
1.
2
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash, and 150 million shares outstanding. You estimate its cost of capital is 13.0%. You forecast that it will generate revenues of $700 million and $800 million over the next two years. Projected operating profit margin is 20%, tax rate is 30%, reinvestment rate is 20%, and terminal exit value multiple at the end of year 2 is 15. What is your estimate...
4) A company has a share price of $25.09 and 116 million shares outstanding. Its market-to-book...
4) A company has a share price of $25.09 and 116 million shares outstanding. Its market-to-book ratio is 4.2. its book debt-equity ratio is 3.2, and it has cash of $800 million. How much would it cost to take over this business assuming you pay its enterprise value? A) $5.194 billion B) $4.3 billion C) $3.462 billion D) $2.2 billion
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash,...
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash, and 150 million shares outstanding. You estimate its cost of capital is 13.0%. You forecast that it will generate revenues of $700 million and $800 million over the next two years. Projected operating profit margin is 20%, tax rate is 30%, reinvestment rate is 20%, and terminal exit value multiple at the end of year 2 is 15. What is your estimate of its...
110 291 44000 company has a share price of $25.09 and 116 million shares outstanding. Its market-to-book tio is 4...
110 291 44000 company has a share price of $25.09 and 116 million shares outstanding. Its market-to-book tio is 4.2, its book debt-equity ratio is 3.2, and it has cash of $800 million. How much would it Ost to take over this business assuming you pay its enterprise value? A) $5.194 billion B) $4.3 billion C) $3.462 billion D) $2.2 billion
Question 10 Homework. Unanswered A T-bond with semi-annual coupons has a coupon rate of 7%, face value of $1,000, and 2 years to maturity. If its yield to maturity is 5%, what is its Macaulay Duration? Answer in years, rounded to three decimal places. Numeric Answer: 1.898 1.898 You are incorrect -------------- Answered - Incorrect 1 attempt left. Change your responses to resubmit
Question 3 Homework. Unanswered You own a bond portfolio worth $51,000. You estimate that your portfolio has an average YTM of 5.9% and a Modified Duration of 14 years. If your portfolio's average YTM were to decrease by 4 basis points, how much would the value of your portfolio change? Round to the nearest cent. (Hint: Answer is positive if the portfolio value increases and negative if the value decreases] Numeric Answer: Unanswered 3 attempts left Submit Question 4 Homework....
please help me answer those questions
1.
2
You estimate that a company's enterprise value is $ 70 million. If it has $10 million debt outstanding, $2 million in cash, and there are 5 million shares outstanding, what's the estimated stock price? Round to the nearest cent. Numeric Answer: A company is projected to generate free cash flows of $10 million per year for the next two years, followed by a stable growth of 2.5% per year in perpetuity. The...
Labor demand Homework. Unanswered Consider the following data taken from a Florida orange grove (farm) where the price of oranges is $4.00 per bushel and the price per worker is $3000 (per month). What would be a correct guess how how many workers would be hired by the farm? Workers Output (bushels 400 1600 2600 3400 4000 4400 4600 Numeric Answer: 4 You are incorrect Answered - Incorrect 2 attempts left. Change your responses to resubmit
Question 5 Homework. Unanswered A bond with a $1,000 face value has a 6% annual coupon rate. The bond matures in 19 years. The current YTM on the bond is 4.5%. If this bonds' YTM were to increase to 5.9%, what would be the resulting price change in dollar terms? Round to the nearest cent. [Hint: 1) If the price drops, the change is a negative number. 2) Calculate the precise impact of a yield change on the bond's price...
1.
2
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash, and 150 million shares outstanding. You estimate its cost of capital is 13.0%. You forecast that it will generate revenues of $700 million and $800 million over the next two years. Projected operating profit margin is 20%, tax rate is 30%, reinvestment rate is 20%, and terminal exit value multiple at the end of year 2 is 15. What is your estimate...
4) A company has a share price of $25.09 and 116 million shares outstanding. Its market-to-book ratio is 4.2. its book debt-equity ratio is 3.2, and it has cash of $800 million. How much would it cost to take over this business assuming you pay its enterprise value? A) $5.194 billion B) $4.3 billion C) $3.462 billion D) $2.2 billion
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash, and 150 million shares outstanding. You estimate its cost of capital is 13.0%. You forecast that it will generate revenues of $700 million and $800 million over the next two years. Projected operating profit margin is 20%, tax rate is 30%, reinvestment rate is 20%, and terminal exit value multiple at the end of year 2 is 15. What is your estimate of its...
110 291 44000 company has a share price of $25.09 and 116 million shares outstanding. Its market-to-book tio is 4.2, its book debt-equity ratio is 3.2, and it has cash of $800 million. How much would it Ost to take over this business assuming you pay its enterprise value? A) $5.194 billion B) $4.3 billion C) $3.462 billion D) $2.2 billion
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