Use the following data to calculate your stock value. Income Statement (in millions) of 2022 Net...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the following data to calculate your stock value. Income Statement (in millions) of 2022 Net Sales Cost of goods sold Depreciation EBIT Interest expense EBT Tax Net Income Current Assets Fixed Asset Total Asset $ 700.00 100.00 270.00 $ 330.00 100.00 230.00 57.50 172.50 $ $ 2021 550 700 1250 Balance sheet (in millions) of 2022 2022 680 500 1180 Current liab. Fixed Debt Total equity Total liab.+equity Additionally, note the following: • There are 50 million shares outstanding • Free cash flow (FCF) and earnings will grow at 2.5% • Firm's equity beta is 1.50 • Risk-free rate is 3% and market return is 13% • Total debt market value is same as the book value of debt If we use the RIM (Residual Income Model) to calculate the stock value. QUESTION #1. the book value per share is choose your answer.... QUESTION #2. the earnings per share is choose your answer... QUESTION #3. the stock value is approximately choose your answer... 2021 220 470 560 1250 per share. per share. per share. 2022 300 280 600 1180 Use the following data to calculate your stock value. Income Statement (in millions) of 2022 Net Sales Cost of goods sold Depreciation EBIT Interest expense EBT Tax Net Income Current Assets Fixed Asset Total Asset $ 700.00 100.00 270.00 $ 330.00 100.00 230.00 57.50 172.50 $ $ 2021 550 700 1250 Balance sheet (in millions) of 2022 2022 680 500 1180 Current liab. Fixed Debt Total equity Total liab.+equity Additionally, note the following: • There are 50 million shares outstanding • Free cash flow (FCF) and earnings will grow at 2.5% • Firm's equity beta is 1.50 • Risk-free rate is 3% and market return is 13% • Total debt market value is same as the book value of debt If we use the RIM (Residual Income Model) to calculate the stock value. QUESTION #1. the book value per share is choose your answer.... QUESTION #2. the earnings per share is choose your answer... QUESTION #3. the stock value is approximately choose your answer... 2021 220 470 560 1250 per share. per share. per share. 2022 300 280 600 1180
Expert Answer:
Answer rating: 100% (QA)
To calculate the book value per share earnings per share and stock value using the Residual Income M... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324302691
11th edition
Authors: Eugene F. Brigham, ? Joel F. Houston
Posted Date:
Students also viewed these finance questions
-
Identify at least three ethical issues you noted in the film as it detailed how the Woodward-Bernstein team covered the story. How has the role of a journalist changed since that time? Think about...
-
Use the following data to calculate your stock value. Note the following: ROE = NI / Total equity Payout ratio = total cash dividends / NI Recent total dividend payments were $55Million There are...
-
D'leon inc., a regional snack-foods producer, was in after an expansion program. D'leon had increased plant capacity and undertaken a major marketing campaign in an attempt to "go national." Thus...
-
What does it mean that flame is non-luminous it is yellow it is invisible It has a very bright blue inner cone it is dark
-
Modify your roll.html page so that it rolls the dice until their combined sum equals 7. Then, use this new page to conduct 20 different experiments, counting how many rolls it takes to obtain a 7...
-
You are auditing the sales and collection cycle for the Smalltown Regional Hospital, a small not-for-profit hospital. The hospital has a reputation for excellent medical services and deficient record...
-
For a heat engine operating between the same two reservoirs (a) \(\eta_{\text {irrev }} \eta_{\text {rev }}\) (c) \(\eta_{\text {irrev }}=\eta_{\text {rev }}\) (d) \(\eta_{\text {irrev }} \geq...
-
Cranergy Products is a cranberry cooperative that operates two divisions, a harvesting division and a processing division. Currently, all of harvestings output is converted into cranberry juice by...
-
What is the future of global trade and how does it affect the US economy and (another country that you'd like to work in someday? Please review the following article...
-
San Francisco led the movement to ban plastic shopping bags and is now proposing to ensure people have access to safe high-quality tap water and ban bottled water. A supporter of the ban says The...
-
Balwaan Gyms and Akhadas is a new enterprise started by two young fitness freak entrepreneurs Mr. Balraj and Mr. Balbuddhi. Balwaan Gyms and Akhadas is a chain of gyms with a vision to make everyone...
-
What is the output of the following application? A. Failed B. The application compiles, but a stack trace is printed at runtime. C. The code does not compile because of line z1. D. The code does not...
-
Suppose we want to implement a Comparator so that it sorts the longest strings first. You may assume there are no null values. Which method could implement such a comparator? A. public int compare...
-
Which of the following diagrams of java.lang classes shows the inheritance model properly? A. B. C. Throwable RuntimeException D. Throwable Error Object Exception RuntimeException Throwable Exception...
-
Given the following keywords, in which order could they be used? (Choose two.) A. try, finally B. catch, try, finally C. try, catch, catch, finally D. finally, catch, try E. try, finally, catch F....
-
Which of the following statements about finally blocks are true? (Choose two.) A. Every line of the finally block is guaranteed to be executed. B. The finally block is executed only if the related...
-
During one pay period, your company distributes $130,500 to employees as net pay. The income tax withholdings were $19,000 and the FICA withholdings were $5,000. Total payroll costs to the company...
-
In a paragraph of approximately 150-200 words, analyze a film or TV/Streaming Show poster of your choosing by focusing on the ways in which representations in the poster are gendered. Include an...
-
It is now January 1, 2006, and you are considering the purchase of an outstanding bond that was issued on January 1, 2004. It has a 9.5 percent annual coupon and had a 30-year original maturity. (It...
-
You must evaluate a proposal to buy a new milling machine. The base price is $108,000, and shipping and installation costs would add another $12,500. The machine falls into the MACRS 3-year class,...
-
Putting all this information together, what is your estimate of MMMs WACC? How confident are you in this estimate? Explain your answer. Access the Thomson ONE problems though the ThomsonNOW Web site....
-
Solve Chapter Problem 13.21, assuming the power spectral density is band limited with \(\omega_{1}=50 \mathrm{rad} / \mathrm{s}\) and \(\omega_{2}=200 \mathrm{rad} / \mathrm{s}\). Data From Chapter...
-
Solve Chapter Problem 13.21, assuming the force is narrowband with a power spectral density given by \(S_{F}(\omega)=\frac{3 \times 10^{-3}}{2+5 \omega^{2}}\). Data From Chapter Problem 13.21: A SDOF...
-
Fine Leather Ltd has provided the following production and sales information for each pair of its dress shoes. The fixed costs for the period are \($1\) 125 000. Required (a) Calculate the...
Study smarter with the SolutionInn App