subject
Business, 15.11.2019 23:31 queenbee2994

You are valuing soda city inc. it has $104 million of debt, $89 million of cash, and 154 million shares outstanding. you estimate its cost of capital is 12.6%. you forecast that it will generate revenues of $703 million and $797 million over the next two years. projected operating profit margin is 21%, tax rate is 29%, reinvestment rate is 23%, and terminal exit value multiple at the end of year 2 is 15. what is your estimate of its share price? round to one decimal place. [hint: compute projected fcff for years 1 and 2 based on info provided, compute terminal value using the exit multiple method, discount it all to find ev, walk the bridge to equity, divide by number of shares outstanding.]

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 18:10
During the year, the delph company had no beginning or ending inventories and it started, completed, and sold only two jobs—job d-75 and job c-100. it provided the following information related to those two jobs: job d-75: molding fabrication total direct materials cost $ 375,000 $ 325,000 $ 700,000 direct labor cost $ 200,000 $ 160,000 $ 360,000 machine-hours 15,000 5,000 20,000 job c-100: molding fabrication total direct materials cost $ 300,000 $ 250,000 $ 550,000 direct labor cost $ 175,000 $ 225,000 $ 400,000 machine-hours 5,000 25,000 30,000delph had no overapplied or underapplied manufacturing overhead during the year. assume delph uses a plantwide overhead rate based on machine-hours.1-a. compute the predetermined plantwide overhead rate.1-b. compute the total manufacturing costs assigned to job d-70 and job c-200.1-c. if delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for job d-70 and job c-200? 1-d. what is delph's cost of goods sold for the year? assume delph uses departmental overhead rates based on machine-hours.2-a. compute the predetermined departmental overhead rates.2-b. compute the total manufacturing costs assigned to job d-70 and job c-200.2-c. if delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for job d-70 and job c-200? 2-d. what is delph's cost of goods sold for the year?
Answers: 3
question
Business, 23.06.2019 00:30
One of the growers is excited by this advancement because now he can sell more crops, which he believes will increase revenue in this market. as an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market. using the midpoint method, the price elasticity of demand for soybeans between the prices of $5 and $4 per bushel is , which means demand is between these two points. therefore, you would tell the grower that his claim is because total revenue will as a result of the technological advancement.
Answers: 1
question
Business, 23.06.2019 01:10
Atariff on avocadoes the price of avocadoes, consumers' surplus for avocado buyers, producers' surplus of avocado growers and tariff revenue. because the loss to is more than the gain to there is a net loss to society.raises; decreases; increases; generates; consumers; producers and government raises; increases; decreases; does not generate; producers and government; consumers lowers; increases; decreases; does not generate; producers and government; consumers raises; increases; decreases; generates; producers; consumers and government
Answers: 2
question
Business, 23.06.2019 01:30
The stock market is -the section of the newspaper where you learn how much a stock is worth -a place where you buy and sell stock -an organized way for people to buy and sell stocks -the same as a brokerage firm
Answers: 1
You know the right answer?
You are valuing soda city inc. it has $104 million of debt, $89 million of cash, and 154 million sha...
Questions
question
Social Studies, 12.03.2021 20:10
question
English, 12.03.2021 20:10
question
English, 12.03.2021 20:10
question
Mathematics, 12.03.2021 20:10
question
Biology, 12.03.2021 20:10
question
Mathematics, 12.03.2021 20:10
question
Mathematics, 12.03.2021 20:10
Questions on the website: 13722361