Flyers, Inc. has a book value of equity is $25.9 million dollars and its forward earnings estimate is $7.24 million. Belowis information about Flyers and a peer group of companies.FlyersBruins Corp.KingsRangersHurricanes73.483.4Market Cap(millions)93.4$125.3$64.5$58.7$94.5PB (current)3.233.984.053.15Forward PE(FY1)18.418.917.716.75 year Historical ROE (Trailing 4 Debt-to-EquityGrowth Ratequarters)ratio24.00%27.00%25.00%28.00%21.00%Estimate the equity intrinsic value of Flyers using PB rati from the comparable companies, assuming that Bruins andKings are the comparable companies.63.417.10%15.00%16.40%16.20%14.90%23.00%32.00%18.00%28.00%31.00%

Name: Flyers, Inc. has a book value of equity is $25.9 million dollars and
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Description: Flyers, Inc. has a book value of equity is $25.9 million dollars and its forward earnings estimate is $7.24 million. Belowis information about Flyers and a peer group of companies.FlyersBruins Corp.KingsRangersHurricanes73.483.4Market Cap(millions)9

The equity intrinsic value is the projected true value of a company's common stock. It is frequently…

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Estimate the equity intrinsic value of Flyers using PB ratios from the comparable companies, assuming that Bruins and Kings are the comparable companies. 63.4 73.4 83.4 93.4

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Flyers, Inc. has a book value of equity is $25.9 million dollars and its forward earnings estimate is $7.24 million. Below is information about Flyers and a peer group of companies. Flyers Bruins Corp. Kings Rangers Hurricanes 73.4 83.4 Market Cap (millions) 93.4 $125.3 $64.5 $58.7 $94.5 PB (current) 3.23 3.98 4.05 3.15 Forward PE (FY1) 18.4 18.9 17.7 16.7 5 year Historical ROE (Trailing 4 Debt-to-Equity Growth Rate quarters) ratio 24.00% 27.00% 25.00% 28.00% 21.00% Estimate the equity intrinsic value of Flyers using PB rati from the comparable companies, assuming that uins and Kings are the comparable companies. 63.4 17.10% 15.00% 16.40% 16.20% 14.90% 23.00% 32.00% 18.00% 28.00% 31.00%
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