Based on the corporate valuation model, the value of Macro Co.'s operations is $1.35 billion. The company's balance sheet shows $90 million in accounts receivable, $70 million in inventory, and $175 million in short-term investments that are unrelated to operations. The balance sheet also shows $85 million in accounts payable, $125 million in notes payable, $315 million in long-term debt, $55 million in preferred stock, $182 million in retained earnings, and $803 million in total common equity. If Macro has 40 million shares of stock outstanding, what is the best estimate of the stock's price per share? O $29.75 $28.00 $25.75 O $27.50 O $23.63

Based on the corporate valuation model, the value of Macro Co.'s operations is $1.35 billion. The company's balance sheet shows $90 million in accounts receivable, $70 million in inventory, and $175 million in short-term investments that are unrelated to operations. The balance sheet also shows $85 million in accounts payable, $125 million in notes payable, $315 million in long-term debt, $55 million in preferred stock, $182 million in retained earnings, and $803 million in total common equity. If Macro has 40 million shares of stock outstanding, what is the best estimate of the stock's price per share? O $29.75 $28.00 $25.75 O $27.50 O $23.63

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Based on the corporate valuation model, the value of Virtual Homes Co.'s operations is $1.15 billion. The company's balance sheet shows $50 million in accounts receivable, $77 million in inventory, and $215 million in cash and marketable securities. The balance sheet also shows $95 million in accounts payable, $165 million in notes payable, $470 million in long-term debt, $85 million in preferred stock, $281 million in retained earnings, and $705 million in total common equity. If Virtual Homes has 50 million shares of common stock and 10 million shares of preferred stock outstanding, what is the best estimate of the common stock's price per share? $12.90 O $64.50 $7.28 $15.44 $13.54
Based on the corporate valuation model, the value of ABC Company’s operations is $1,313 million. The company's balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short-term investments that are unrelated to operations. The balance sheet also shows $90 million in accounts payable, $120 million in notes payable, $354 million in long-term debt, $58 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity. If ABC Company has 35 million shares of common shares outstanding, what is the best estimate of the stock price per share? Round your answer to two decimal places of dollar, but ignore dollar and million in your answer, e.g., xx.xx. (Hint: Refer to numerical examples in Corporate Valuation Model.) Answer:
Based on the corporate valuation model, the value of a company's operations is $1,700 million. The company's balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short - term investments that are unrelated to operations. The balance sheet also shows $90 million in accounts payable, $230 million in notes payable, $700 million in long-term debt, $130 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity. If the company has 40 million shares of stock outstanding, what is the best estimate of the stock's price per share?
Based on the corporate valuation model, the value of Weidner Co.'s operations is $1,200 million. The company's balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $150 million in short-term investments that are unrelated to operations. The balance sheet also shows $90 million in accounts payable, $120 million in notes payable, $250 million in long-term debt, $50 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity. If Weidner has 28 million shares of stock outstanding, what is the best estimate of the stock's price per share? (Round your answer to 2 decimal places.)
The value of Broadway-Brooks Inc.'s operations is $846 million, based on the corporate valuation model. Its balance sheet shows $70 million in accounts receivable, $40 million in inventory, $40 million in short-term investments that are unrelated to operations, $20 million in accounts payable, $150 million in notes payable, $90 million in long-term debt, $25 million in preferred stock, $150 million in retained earnings, and $300 million in total common equity. If the company has 18 million shares of stock outstanding, what is the best estimate of the stock's price per share? (Round your answer to 2 decimal places.)
Based on the corporate valuation model, the value of a company's operations is $250 million. The company's balance sheet shows: $40 million in accounts receivable, and operations. shows: payable, debt, and stock, equity. 1) $63.00 The balance sheet also 2) $20.58 $30 million in inventory, 3) $42.00 4) $29.40 $80 million in short-term investments that are unrelated to $20 million in accounts $40 million in notes payable, $70 million in long-term If the company has 5 million shares of stock outstanding, what is the best estimate of the stock's price per share? $10 million in preferred $70 million in retained earnings, $60 million in total common
Reynolds Construction's value of operations is $733 million based on the corporate valuation model. Its balance sheet shows $70 million of short-term investments that are unrelated to operations, $110 million of accounts payable, $145 million of notes payable, $176 million of long-term debt, $50 million of common stock (par plus paid-in-capital), and $170 million of retained earnings. What is the best estimate for the firm's value of equity, in millions? (Enter your answer as a whole number in millions. For example, if you get 33 million as the answer, enter: 33.)
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You are evaluating the balance sheet for SophieLex’s Corporation. From the balance sheet you find the following balances: cash and marketable securities = $370,000; accounts receivable = $1,260,000; inventory = $2,160,000; accrued wages and taxes = $530,000; accounts payable = $830,000; and notes payable = $660,000. Calculate SophieLex’s current ratio. (Round your answer to 2 decimal places.) Calculate SophieLex’s quick ratio. (Round your answer to 2 decimal places.) Calculate SophieLex’s cash ratio. (Round your answer to 2 decimal places.)
The Jacks corporation reported the following:i. Net income $ 840,000.00ii. Accounts payable and accruals $1,270,650.00iii. Interest expense $ 305,000.00iv. Return on asset 16%v. Tax rate 30%As the company’s business analyst, you know that Jacks finances only with debt and equity. 45%of its total invested capital is debt. Calculate and interpret the basic earnings power ratio, thereturn on equity, and the return on invested capital. Please show work
Purple Panda Products Inc. has a total asset turnover ratio of 8.50x, net annual sales of $40 million, and operating expenses of $18 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $1.75 million on which it pays a 7% interest rate. To analyze a company's financial leverage situation, you need to measure the firm's debt management ratios. Based on the preceding information, what are the values for Purple Panda's debt management ratios? Ratio Debt ratio Times-interest-earned ratio Value Influenced by a firm's ability to make interest payments and pay back its debt, if all else is equal, creditors would prefer to give loans to companies with debt ratios.

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