Hello, How do I solve this stock problem for corporate fiance? Without using excel. Information: ABC company has EBITDA of $125 million, EPS of $2, debt of $315 million, and $0 cash. ABC company has 60 million shares outstanding. 9.1 is the industry average P/E ratio. Question: Using EPS, estimate the price of its stock.
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Hello,
How do I solve this stock problem for corporate fiance? Without using excel.
Information:
ABC company has EBITDA of $125 million, EPS of $2, debt of $315 million, and $0 cash. ABC company has 60 million shares outstanding. 9.1 is the industry average P/E ratio.
Question:
Using EPS, estimate the price of its stock.
Step by step
Solved in 1 steps
- You are the new CFO of Risk Surfing Ltd, which has current assets of $ 7 920, net fixed assets of $17 700, current liabilities of $4 580 and long term debts of $5 890. Required:a.Calculate owners’ equity and build a balance sheet for the company? b.How much is net working capital of the company? c.Calculate the return on assets of the company given that Return on Equity is 30%? d.What is the PE of the company if total number of ordinary sharesoutstanding is 2000 and market price of each share is $12?Answer the following question correctly and show your Complete Solution (Given, Required, Equation, Solution, Answer). PERA Financial Institution declared a Php 35,000,000.00 dividend for the common stocks . If there are total of 200,000 shares of common stock , how much is the dividend per share ? A. Php 125.00 B. Php 175.00 C. Php 230.00 D. Php 350.00the new CFO of Risk Surfing Ltd, which has current assets of $ 7 920, net fixed assets of $17 700, current liabilities of $4 580 and long term debts of $5 890. Required:a. Calculate owners’ equity and build a balance sheet for the company?and how much is net working capital of the company?b. Calculate the return on assets of the company given that Return on Equityis 30%?c. What is the PE of the company if total number of ordinary sharesoutstanding is 2000 and market price of each share is $12?
- You are given the following information: Stockholders' equity as reported on the firm’s balance sheet = $5.75 billion, price/earnings ratio = 9.5, common shares outstanding = 20 million, and market/book ratio = 2.3. The firm's market value of total debt is $5 billion; the firm has cash and equivalents totaling $300 million; and the firm's EBITDA equals $3 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.The balance sheet for Larry underwood motors shows a book value of stockholder’s equity ( book value per share x total shares outstanding) of $1,396,000. Furthermore, the firm’s income statement for the year just ended has a net income of $501,000, is $0.282 per share of common stock outstanding. The price earnings ratio for firm’s similar to underwood motors is 19.94. A. What price would you expect underwood motors shares to sell for? The market price per share is Round to the nearest cent.The balance sheet for Larry underwood Motors shows a book value of stockholders’ equity (book value per share * total shares outstanding) of $1,354,000. Furthermore, the firm’s income statement for the year just ended has a net income of $509,000, which is $0.257 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood motors is 19.52. What price would you expect Underwood motors shares to sell for? What is the book value per share for Underwood’s shares?
- You are the new CFO of Risk Surfing Ltd, which has current assets of$ 7 920, net fixed assets of $17 700, current liabilities of $4 580 and long term debts of $5 890. Required: Calculate owners’ equity and build a balance sheet for the company? How much is net working capital of the company? Calculate the return on assets of the company given that Return on Equity is 30%? What is the PE of the company if total number of ordinary shares outstanding is 2000 and market price of each share is $12?You are given the following information: Stockholders’ equity !$3.75 billion, price/earnings ratio ! 3.5, common shares outstanding ! 50 million, and market/book ratio ! 1.9. Calculate the price of a share of the company’s common stock3. Below is a snapshot of some information about Microsoft Corporation from Yahoo! Finance on 10/16/2019. B) What is the Microsoft stock price and the market cap? C) Based on the information you collected in question (1), what is the total number of shares outstanding for Microsoft? (Hint: Market cap is the short name for “Market capitalization”. It represents the market value of a company’s total outstanding shares. It is equal to the stock price per share* total number of shares outstanding). D)What is Microsoft dividend payment and dividend yield?
- The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share\times total shares outstanding) of $1,358,000. Furthermore, the firm's income statement for the year just ended has a net income of $577, 000, which is $ 0.321 per share of common stock outstanding. The price - earnings ratio for firms similar to Underwood Motors is 21.33. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares?The Howe Company's stockholders' equity account is as follows: LOADING... . The earnings available for common stockholders from this period's operations are $100,000, which have been included as part of the $2.1 million retained earnings. a. What is the maximum dividend per share that the firm can pay? (Assume that legal capital includes all paid-in capital.) b. If the firm has $140,000 in cash, what is the largest per-share dividend it can pay without borrowing? c. Indicate the accounts and changes, if any, that will result if the firm pays the dividends indicated in parts a and b. d. Indicate the effects of an $80,000 cash dividend on stockholders' equity. Question content area bottom Part 1 a. The maximum dividend per share that the firm can is $enter your response here. (Round to the nearest cent.) Part 2 b. If the firm has $140,000 in cash, the largest per-share dividend it can pay without borrowing is $enter your response here. (Round…The balance sheets for Larry underwood motors shows a book value of stockholders equity book value per share x total shares outstanding of $1349000. Furthermore the firms income statement for the year just ended has a net income of $598000, which is $0.285 per share of common stock outstanding. The price earnings ratio for firms similar to underwood motors is 18.71. A. What price would you expect underwood motors shares to sell for ? The market price per share is $ round to the nearest cent.
