Raddus is a technology company and has an enterprise value of $100 million. It currently has $25 million in debt and $5 million in cash. Current estimates for FY1 EBITDA and FY2 EBITDA are $20 million and $30 million, respectively. Company A’s industry is currently growing EBITDA at 10%. The median EV/EBITDAFY1 multiple is 5x. Company A is currently growing EBITDA at 20%. Using this data, what price do you think this company should be trading at?
Q: gross method. Purchased $4,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, inv...
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is recor...
Q: JT Engineering's current asset information is shown here. If JT's current liabilities are $300,000, ...
A: Lets understand the basis. Current ratio compares the current asset with current liabilities. Curren...
Q: nland Company has the following labor costs: Factory—Gross wages $540000 Factory—Net wages 440000 Em...
A: Cost variance- A cost variance is a difference between the actual amount spent and the amount estima...
Q: The following pre-closing accounts and balances were drawn from the records of Carolina Company on D...
A: Retained Earnings in the Balance Sheet represents the reserves and overall revenues earned by entity...
Q: Single-payment loan repaymentA person borrows $200 to be repaid in 8 years with 14% annually compoun...
A: Compound interest happens when formerly earned interest is increased to the principle investment amo...
Q: Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basi...
A: 1) Schedule of Expected cash collections Januar...
Q: Mommy Hai-dee, Inc. as of yearend of 2019 has a Total Working Capital of Php 3,000,000.00 and with a...
A: Find the formula to calculate the book value below for your reference.
Q: Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, ...
A: Operating income = Sales - Variable cost - fixed cost
Q: What are some pros and cons of having a high cash ratio?
A: The ratio analysis helps to analyse the financial statements of the business. The cash ratio is cal...
Q: Eliza Vega started an accountinin on June, investing 523,000. Her net loss for the month was \$3,000...
A: Formula: Ending capital Balance = Beginning Capital balance - Net loss - Withdrawals
Q: Advise Sam’s employer as to the FBT consequences (using statutory formula method) arising out of the...
A: FBT stands for the fringe benefit tax. It is the benefit which an employee receives from his or her ...
Q: 2. Suriname and Paraguay consume two goods, coffee and machines, and labour is the only input into p...
A: The solution for the above mentioned question is given in the following steps for your reference.
Q: Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the...
A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service re...
Q: Thankyou for answering the first two parts can you please give the solution for subpart c and d
A: Introduction:- A corporation's shares are units of equity possession. Shares exist as a money qualit...
Q: Kellogg Company is the world's leading producer of ready-to-eat o ading producer of grain-based conv...
A: The income statement explains the financial performance of the company for a particular period of ti...
Q: What alternative courses of action are appropriate when a population is rejected using nonstatistica...
A: Test of Details of Balances: The test of details of balances is expected to show that the trial of c...
Q: Complete the following by calculating the cash discount and net amount paid: (If more than one disco...
A: The terms 3/10, 2/15, n/30 implies that a discount of 3% will be allowed if payment is made within 1...
Q: How much is the return on plan assets during the year?
A: Formula for Closing Balance of Plan Assets = Opening value of plan assets ...
Q: Two Sole Proprietors Form a Partnership On Oct. 31, 2016, Apalisoc and Tuddao agreed to combine thei...
A: Partnership is one of the agreement or arrangement between two or more than two persons in which the...
Q: Discuss the following terms as they relate to the presentation of cash flow information: Liquidity ...
A: Financial Ratio: A financial ratio, or bookkeeping proportion, is the general extent of two chosen m...
Q: Gemini plc manufactures four products using the same machinery. The following details relate to its ...
A: When some input is in limited capacity , then we need to find out contribution per input. For exampl...
Q: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000....
A: Lets understand the basics. Journal entry is required to make to record financial event and transact...
Q: Exercise 4-11 Computing net sales for multiple-step income statement LO P4 A company reports the fol...
A: Net sales = Sales, gross - Sales discount - Sales return and allowances
Q: 1. Springer Inc. began 2021 with 10,000 shares of common stock outstanding with a par value of $10 p...
A: Shares of common stock Number of shares January 1 10000 shares outstanding 10000 March 1...
Q: Complete the missing figures: Q15 Purchases of raw materials during that year Q16 Raw materials u...
A: Idle stock of physical goods that contain economic value and are held in various forms of an organiz...
Q: Which of the following payments will be subject to Canada Pension Plan contributions?
A: Pension is the amount which is given to the employee post retirement and for which the same employee...
Q: 5. Acme Corp. makes a vending machines for small companies. They have recently started selling their...
A: Break-Even Point is a situation where if Breakeven Units are sold, the Company will face a situation...
Q: Chapter 5 Quiz Using the following information for a periodic inventory system, what is the amount o...
A: Net Income- Net income term refers to the amount an entity or company makes later than deducting cos...
Q: a. Compute the company's current E&P for the year ended December 31, 2021. b. Compute the company's ...
A: Current Earnings and Profits refers to the net income earned by the organization after all the expen...
Q: Which of the following types of income is not subject to the "kiddie tax"?
A: Solution:- Kiddie Tax:- The Kiddie tax is tax on child's unearned income. "If the child's unearned i...
Q: at 1st January, 2005 stood as under Balance Sheet Liabilities Amount Assets Amount Sundry creditors ...
A: The answer is stated below:
Q: Guests Revenue Served P 480.00 Monday Tuesday Wednesday Thursday Friday Saturday Sunday Week's Total...
A: Formula Used: Daily Average = All the seven days revenue from Monday to Sunday / 7 days
Q: The property, plant and equipment section of San Miguel Corporation’s balance sheet at December 31, ...
A: Total PP&E = Gross PP&E + Capital Expenditures Amount paid to relocate Cost of tearing ...
Q: Year Year 2 $ 175,000 (60,000) ( 40,000) (15,000) (10,000) $ 310,000 (85,000) (50,000) (20,000) (15,...
A: Jack and Jill are owners of Up A Hill, an S corporation. Jack has = 25% Jill = 75% Jack Jill ...
Q: A factory building needs to hire janitorial services. This is classified as indirect labor 2. Period...
A: Ans. a. BOTH statement are TRUE
Q: A 10-year loan is available from a relative at 10% simple interest. The amount borrowed will be $200...
A: Simple Interest: Interest paid annually under simple interest rate = $200,000 x 10% = $20,000 p.a. T...
Q: FOB SHIPPING POINT, who is the owner of goods in transit
A: The invoice made at the time of sale includes the invoice price, payment terms, discount terms, etc....
Q: A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee in al...
A: In general, payments of salaries for services done as an employee in the United States are subject t...
Q: Sele 00 S10,000 $12.000 $12,500 12/31/YRS 12/31/YRS 00 00 s of the above transacions and what is the...
A: Capital Gains are taxed at different rate depending on their holding period. If the asset is sold af...
Q: Prepare the general journal entries to record revaluation of the assets. Prepare the general journal...
A: Larry Adams, Hazel Adams, and Isiah Adams are partners in the partnership firm and they agree to adm...
Q: At present, a foundation who has 6 million deposit in bank with interest of 10% compounded annually,...
A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a prese...
Q: Levin Furniture buys a living room set with a $5,800 list price and a 50% trade discount. Freight (F...
A: >Discount term is a payment agreement between buyer and the seller. >The buyer and seller ...
Q: a) What are the normal and abnormal spoilage units, respectively, for March when using FIFO? b) Usi...
A: Process costing is one of the type and form of costing, under which product has to go through severa...
Q: (1) Manufacturing costs are regarded as expenses of the current period and are expensed when incurre...
A: Solution Period costs are costs expensed on the income statement at the time when they are incurred....
Q: Requirement 1. Journalize the adjusting entries needed on December 31 for Watson Fishing Charters. A...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: On March 1, 2014, cat and Fish formed a partnership with each contributing the following assets: Cat...
A: In the given question profit sharing ratio of partnership is not given. So we assume that Cat and Fi...
Q: What is a base rate entity? And what rates of tax are payable by these entities?
A: ANSWER A base rate entity for an income year is a company if: the company's aggregated turnover fo...
Q: A company that sells smartphones prepays $20,000 to cover the next 12 months’ worth of utilities. Wh...
A: Every transaction is recorded in books of account and has got different relevance. Assets , liabilit...
Q: What critique can say about this?
A: Liquidity ratios analysis is the usage of numerous ratios to determine the capability of a company t...
Q: Indus clothing provides you the following ledger balances. Prepare trial balance as on 31* December,...
A: Trial balance is the summarized statement which contains debit and credit balances of various types ...
Raddus is a technology company and has an enterprise value of $100 million. It currently has $25 million in debt and $5 million in cash. Current estimates for FY1 EBITDA and FY2 EBITDA are $20 million and $30 million, respectively. Company A’s industry is currently growing EBITDA at 10%. The median EV/EBITDAFY1 multiple is 5x. Company A is currently growing EBITDA at 20%. Using this data, what price do you think this company should be trading at?
Step by step
Solved in 2 steps
- Appalachian Registers, Inc. (ARI) has current sales of $50 million. Sales are expected to grow to $75 million next year. ARI currently has accounts receivable of $11 million, inventories of $15 million, and net fixed assets of $17 million. These assets are expected to grow at the same rate as sales over the next year. Accounts payable are expected to increase from their current level of $15 million to a new level of $20 million next year. ARI wants to increase its cash balance at the end of next year by $3 million over its current cash balances, which average $4 million. Earnings after taxes next year are forecasted to be $10 million. Next year, ARI plans to pay dividends of $1 million, up from $500,000 this year. ARI’s marginal tax rate is 34 percent. How much external financing is required by ARI next year? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. $ _____ million ?The Blunt Trucking Company needs to expand its fleet by 40 percent to meet the demands of two major contracts it just received to transport military equipment from manufacturing facilities scattered across the United States to various military bases. The cost of the expansion is estimated to be $10 million. Blunt maintains a 30 percent debt ratio and pays out 50 percent of its earnings in common stock dividends each year. a. If Blunt earns S4 million in 2015, how much common stock will the firm need to sell in order to maintain its target capital structure? b. If Blunt wants to avoid selling any new stock but wants to maintain a constant dividend payout percentage of 50 percent, how much can the firm spend on new capital expenditures?Earleton Manufacturing Company has $3 billion in sales and $661,000,000 in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity. a. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answers completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar.$ ____ b. What is Earleton's target fixed assets/sales ratio? Do not round intermediate calculations. Round your answer to two decimal places. % ____ c. If Earleton's sales increase 30%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answer completely. Do not round intermediate calculations. Round your answer to the nearest dollar.$ ____
- Last year Jain Technologies had $250 million of sales and $100 million of fixed assets, so its Fixed Assets/Sales ratio was 40%. However, its fixed assets were used at only 40% of capacity. Now the company is developing its financial forecast for the coming year. As part of that process, the company wants to set its target Fixed Assets/Sales ratio at the level, it would have had, had it been operating at full capacity. What target Fixed Assets/Sales ratio should the company set? a. 19.0% b. 14.6% c. 16.0% d. 15.4% e. 14.2% please type out all of your workWater and Power Co. (W&P) currently has $575,000 in total assets and sales of $1,400,000. Half of W&P’s total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 22% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is . (Note: Round your answer to the nearest whole number.) W&P was using its fixed assets at only 95% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets? (Note: Round your answer to the nearest whole number.) $1,547,368 $1,768,421 $1,473,684 $1,694,737 When you consider that W&P’s fixed assets were being underused, its target fixed assets to sales ratio should be %. (Note: Round your answer to two decimal places.) When you consider that W&P’s fixed assets were being underused, how much fixed assets must W&P raise to…Last year Jain Technologies had $250 million of sales and $100 million of fixed assets, so its Fixed Assets/Sales ratio was 40%. However, its fixed assets were used at only 40% of capacity. Now the company is developing its financial forecast for the coming year. As part of that process, the company wants to set its target Fixed Assets/Sales ratio at the level, it would have had, had it been operating at full capacity. What target Fixed Assets/Sales ratio should the company set? Please explain the process and show calculations.
- Williamson Industries has $3 billion in sales and $2.826 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. a. What level of sales could Williamson Industries have obtained if it had been operating at full capacity? Enter your answer in billions of dollars. Round your answer to five decimal places. $ billion b. What is Williamson's target fixed assets/sales ratio? Do not round intermediate calculations. Round your answer to two decimal places. % c. If Williamson's sales increase 13%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Enter your answer in billions of dollars. Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to five decimal places. billion $Williamson Industries has $7 billion in sales and $1.944 billion in fixedassets. Currently, the company’s fixed assets are operating at 90% of capacity.a. What level of sales could Williamson Industries have obtained if it had been operatingat full capacity?b. What is Williamson’s target fixed assets/sales ratio?c. If Williamson’s sales increase 15%, how large of an increase in fixed assets will thecompany need to meet its target fixed assets/sales ratio?Walter Industries has $5 billion in sales and $1.7 billion in fixed assets. Currently, the company’s fixed assets are operating at 90% of capacity. What level of sales could Walter Industries have obtained if it had been operating at full capacity? b.What is Walter’s Target fixed assets/Sales ratio? c.If Walter’s sales increase 12%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio?
- Walter Industries has $5 billion in sales and $1.7 billion in fixed assets. Currently, the company’s fixed assets are operating at 90% of capacity. a.What level of sales could Walter Industries have obtained if it had been operating at full capacity? b.What is Walter’s Target fixed assets/Sales ratio? c.If Walter’s sales increase 12%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio?Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $4.4 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $7.4 million next year. Assets Liabilities and Equity Current assets $ 1,980,000 Current liabilities $ 1,672,000 Fixed assets 3,700,000 Long-term debt 1,800,000 Equity 2,208,000 Total assets $ 5,680,000 Total liabilities and equity $ 5,680,000 If fixed assets have enough capacity to cover the increase in sales and all other assets and current liabilities are expected to increase with sales, what amount of additional funds will Psy Ops need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.Last year Jain Technologies had $260 million of sales and $104 million of fixed assets, so its Fixed Assets/Sales ratio was 40%. However, its fixed assets were used at only 60% of capacity. Now the company is developing its financial forecast for the coming year. As part of that process, the company wants to set its target Fixed Assets/Sales ratio at the level, it would have had, had it been operating at full capacity. What target Fixed Assets/Sales ratio should the company set? a. 24.00% b. 19.35% c. 17.14% d. 31.58% e. 11.43%