The target company has sales of $2 million, net income of $1 million, and cash flows to equity of $1.1 million. The industry P/E ratio is 16.5. What is the valuation of the target company? Group of answer choices $18.15 million $33 million $16.5 million $10 million
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The target company has sales of $2 million, net income of $1 million, and cash flows to equity of $1.1 million. The industry P/E ratio is 16.5. What is the valuation of the target company?
Group of answer choices
$18.15 million
$33 million
$16.5 million
$10 million
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Solved in 3 steps
- Suppose a firm has had the historical sales figures shown as follows. What would be the forecast for next year's sales using the average approach? Year 2017 2018 Sales $ 750,000 500,000 Multiple Choice O $695,000 $700,000 $750,000 $775.000 2019 $ 700,000 2020 $ 750,000 2021 $ 775,000Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the firm's payout ratio be? Multiple Choice .42 .114 1.14 8.810Select one company of the 30 companies that make up the Dow Jones Industrial Average (DJIA). a. Provide a brief history of the company chosen from the 30 companies of the DJIA.b.Describe the Dividend Discount Model (DDM). Using the DDM value the companyc.Provide a brief description of the Residual Income Model. Using the RIM value, the companyd.Describe the Free Cash Flow Model (FCF). Using the FCF value the companye. Describe the P/E ratio for the company and determine the expected price of the company using Earnings, Cash Flow and Salesf.summary of the detailed fundamental analysis for the company, provide a current status of the company and then explain if you would invest in the company at the current price. Explain why you made the investment decision and at what price range you would invest money in this company.
- Jones Corp. had the following results for the period just ended; Sales P 2.0 million Net Income P 0.5 million; Capital Investment P 1.0 million To arrive at the return on investment, the following should be used: a. ROI = (20/20) X (20/5) c. ROI = (10/20) X (20/5) b. ROI = (20/10) X (5/20) d. ROI = (10/20) X (5/20)Firm K has a margin of 9%, turnover of 1.4, and sales of $1,610,000. Required: Calculate Firm K's net Income, average total assets, and return on Investment (ROI). Choose Factors: Choose Numerator: Net Income * Choose Factors: X Average Total Assets /Choose Denominator: = 1 Return on Investment Choose Numerator: /Choose Denominator: 1 1 Net Income Net Income Average Total Assets Average Total Assets 0 Return on Investment Return on Investment 0Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company $1 Discount Store Everything $5 Actual return 12% 11% Standard deviation of returns 8% 10% Beta 1.5 1.0 What would be the required return for $1 Discount Store according to the capital asset pricing model (CAPM)? Enter your answer as a decimal.
- using the table find the folloing for the four firms: Enterprise value to EBITDA Ratio Price-Earnings multiole PEG raio Cpmpany Market Value (OMR million) Net Income (OMR million) Earnings Growth Market Value of Equity (OMR million) Market Value of Debt (OMR million) Cash (OMR million) EBITDA (OMR million) Happy 117.95 22.5 4% 53.07 64.87 41.25 43.85 Smart 112.35 20.25 4.5% 59.53 52. 79 45 44.88 Kind 116.26 21 4.65% 69.76 46.5 63.95 28.20 Cheerful 120 24 5% 42 78 62.4 44.32Suppose a firm has had the following historic sales figures. What would be the forecast for next year's sales using the average approach? You must use the built-in Excel function to answer this question. Input area: Year Sales 2016 2017 2018 es es e $ 1,500,000 $ 1,750,000 $ 1,400,000 2019 $ 2,000,000 2020 $ 1,600,000 Output area: Next year's salesIf a firm has an EV of $820 million and EBITDA of $187 million, what is its EV ratio?
- Listed Digital Industry players have the following market value and earnings per share: Player Market Value per share Earnings per share P/E Ratio A 46.50 5.00 B 45.24 6.03 C 16.25 2.18 D 25.11 3.72 E 34.32 4.29 An analyst is looking into the performance of another firm in the same industry but is not listed, the company reported earnings of Php 1.25 per share. How much is the value of the firm?Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company $1 Discount Store Everything $5 Forecasted return 12% 11% Standard deviation of returns 8% 10% Beta 1.5 1.0 What would be the fair return for each company according to the capital asset pricing model (CAPM)?As a consultant to Basso Inc., you have been provided with the following data: D1 = $0.68; P0 = $28.50; and g = 7.00% (constant). What is the cost of common from retained earnings based on the DCF approach? Group of answer choices 10.14% 9.10% 9.48% 9.39% 8.64%