Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

begin{tabular}{|c|c|} hline Balance Sheet & begin{tabular}{c} Mmm Good Foods Incorporated 2019 end{tabular} hline Cash and short-term Investments & $713 hline

image text in transcribed
image text in transcribed
\begin{tabular}{|c|c|} \hline Balance Sheet & \begin{tabular}{c} Mmm Good \\ Foods \\ Incorporated \\ 2019 \end{tabular} \\ \hline Cash and short-term Investments & $713 \\ \hline Accounts receivable & 379 \\ \hline Inventory & 45 \\ \hline other current assets & 417 \\ \hline Long-lived assets & 4,050 \\ \hline Total assets & $5,604 \\ \hline Current liabilities & $1,414 \\ \hline Total liabilities & 11,152 \\ \hline Noncontrolling interest & \\ \hline \begin{tabular}{l} Shareholders' equity \\ Total liabilities and equity \end{tabular} & $5,604(5,548) \\ \hline Income Statement & \\ \hline Sales & $6,456 \\ \hline Cost of sales & 3,543 \\ \hline Gross margin & $2,913 \\ \hline Earnings before interest and taxes & $1,634 \\ \hline Interest & 316 \\ \hline Taxes & 333 \\ \hline Income from discontinued operations & 616 \\ \hline Net income & $1,601 \\ \hline Share price & $72 \\ \hline Earnings per share & 5.01 \\ \hline Number of outstanding shares (millions) & 355.9 \\ \hline Cash Flows & \\ \hline Cash flow from operations & $1,213 \\ \hline Capital expenditures & 413 \\ \hline Dividends & 739 \\ \hline \end{tabular} Required: Determine the valuation of the company at the end of 2019 using each of the following three methods. Assume earnings and cash flows for the coming 10 years are equal to the earnings and cash flows in 2019; the appropriate free cash flow multiple is 23.4. (Enter your answers in millions rounded to nearest whole number.) a. Market capitalization. b. Enterprise value. c. Free cash flow multiple

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions