FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fang Company is valued at an LTM EV/EBIT multiple of 7.50x. Fang's LTM EBIT is $150.0 million. The rm has $200.0 million in debt and

Fang Company is valued at an LTM EV/EBIT multiple of 7.50x. Fang's LTM EBIT is $150.0 million. The firm has $200.0 million in debt and excess cash of $25.0 million. Fang has no preferred stock and minority interest of $15.0 million. Fang has 55.0 million shares of stock outstanding. 



What is Fang's implied stock price?

Step by Step Solution

★★★★★

3.40 Rating (150 Votes )

There are 3 Steps involved in it

Step: 1

To find Fangs implied stock price we need to first calculate th... 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

Recommended Textbook for

South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities

South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities

Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen

20th Edition

978-0357109144, 978-0357686652, 978-1305874824

More Books

Students also viewed these Finance questions

Question

★★★★★
1. Based on the forecasts above, use the spreadsheet below to construct a pro forma income statement for Idexo over the next five years. What is the annual growth rate of the firm's net income over...

Answered: 1 week ago

Question

★★★★★
This case draws on material from Chapters 1820. See MyLab Finance for the data in Tables 1, 2, 3, and 4 and the spreadsheet referenced in the case questions. Idexo Corporation is a privately held...

Answered: 1 week ago

Question

★★★★★
Multiple Choice Questions 1. In general, what is the filing deadline for a C corporation in 2016? a. March 15 b. April 15 c. The 15th day of the 3rd month after year-end d. The 15th day of the 4th...

Answered: 1 week ago

Question

★★★★★
Wealthy Manufacturing Company purchased 40 percent of the voting shares of Diversified Products Corporation on March 23, 20X4. On December 31, 20X8, Wealthy Manufacturings controller attempted to...

Answered: 1 week ago

Question

★★★★★
Gateway sells computers and related products by mail, Internet, and telephone. With each PC, Gateway sent a "Standard Terms and Conditions Agreement" including a "Dispute Resolution" clause, stating...

Answered: 1 week ago

Question

★★★★★
Name three types of composite materials used for aircraft and aerospace structures.

Answered: 1 week ago

Question

★★★★★
Describe Berkeleys objection to primary qualities.

Answered: 1 week ago

Question

★★★★★
Herman Company has three products in its ending inventory . Specific per unit data for each of the products are as follows: Required: What unit values should Herman use for each of its products when...

Answered: 1 week ago

Question

★★★★★
Which of the following is included in the GLOBE framework but not in the Hofstede dimensions? A. Performance orientation B. Short-term orientation C. Masculinity D. Femininity E. Uncertainty avoidance

Answered: 1 week ago

Question

★★★★★
Lunatics, an e-commerce sports company wants to buy Rowdy Trading Cards at a cost of $504 million. Rowdy will operate for 20 years. They expect annual cash flows from operations to be $70.1 million...

Answered: 1 week ago

Question

★★★★★
Which of the following attacks doesn't steal data but causes costly disruptions to any enterprise or country? DDOS Phishing C Malware D Spyware

Answered: 1 week ago

Question

★★★★★
A software company wants to improve its customer experience scores by 3% over the next 30 days. A data professional works to achieve this objective by understanding current scores and how far away...

Answered: 1 week ago

Question

★★★★★
ABC Insurance Company has a branch office, which consists of a branch manager and 5 clerical assistants. The branch manager reports to a division manager. The branch office has its own bank account...

Answered: 1 week ago

Question

★★★★★
A large tank of fish from a hatchery is being delivered to a lake. The hatchery claims that the mean length of fish in the tank is 15 inches, and the standard deviation is6inches. A random sample...

Answered: 1 week ago

Question

★★★★★
Emily Smith files her tax return on the basis of a fiscal year. Her records show that she received income in November 2021 and February 2022 from which there was backup withholding ($100 and $50,...

Answered: 1 week ago

Question

★★★★★
Tax Losses and Capital Losses Recouped The records of Gareth Young, an Australian resident, over three tax years disclosed: 2021/22 2022/23 2023/24 $ $ $ Assessable business income 54,000 72,000...

Answered: 1 week ago

Question

★★★★★
JARROW CORPORATION 2018 Common-size 2019 Common-size Common-base year Assets Current assets Cash $8,764 % $10,704 % Accounts receivable 21,953 % 24,437 % Inventory 38,322 % 43,297 % Total $69,039 %...

Answered: 1 week ago

Question

★★★★★
The executor of Gina Purcells estate has recorded the following information: Assets discovered at death (at fair value): Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Answered: 1 week ago

Question

★★★★★
In 2016, McKenzie purchased qualifying equipment for his business that cost $212,000. The taxable income of the business for the year is $5,600 before consideration of any 179 deduction. Calculate...

Answered: 1 week ago

Question

★★★★★
Multiple Choice Questions 1. Candy Corp. is a C corporation that began operations in year 1. Candy Corp.'s year 1 through year 3 taxable earnings and profits (E & P) are computed as follows. Year E &...

Answered: 1 week ago

Question

★★★★★
Last year Jane identified $50,000 as a nonbusiness bad debt. In that tax year, before considering the tax implications of the nonbusiness bad debt, Jane had $100,000 of taxable income, of which...

Answered: 1 week ago

Question

★★★★★
Use the results in Problem 7 to answer the following questions. a. Provide a numerical value for r2YX1|X2, X3. b. Which two models should you compare in testing whether the correlation in part (a) is...

Answered: 1 week ago

Question

★★★★★
An experiment was conducted regarding a quantitative analysis of factors found in high-density lipoprotein (HDL) in a sample of human blood serum. Three variables thought to be predictive of, or...

Answered: 1 week ago

Question

★★★★★
Residential real estate prices are thought to depend, in part, on property size and number of bedrooms. The house size X1 (in hundreds of square feet), number of bedrooms X2, and house price Y (in...

Answered: 1 week ago

Previous Question Next Question