Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Given the following (fake) financial statements calculate EV/EBIT multiple for the firm. Additionally the firm is currently trading at $57.61, has an EPS of $0.15,
Given the following (fake) financial statements calculate EV/EBIT multiple for the firm. Additionally the firm is currently trading at $57.61, has an EPS of $0.15, and a Market cap of $976,634,398.
Balance Sheet
Prior Year | Current Year | |
Cash | 6,293,018 | 4,680,692 |
Accounts Receivable | 426,960 | 591,491 |
Inventory | 4,908,459 | 6,470,422 |
Current Assets | 6,293,018+426,960+4,908,459 | 4,680,692+591,491+6,470,422 |
PP&E, net | 18,106,282 | 21,099,084 |
Goodwill | 4,376,906 | 5,326,744 |
Other assets | 434,802 | 585,139 |
Accounts Payable | 647,128 | 634,068 |
Short term portion of debt | 1,283,508 | 667,286 |
Deferred Dividends | 6,600,194 | 2,971,396 |
Current Liabilities | 647,128+1,283,508+6,600,194 | 634,068+667,286+2,971,396 |
Long Term debt | 49,135,344 | 46,692,271 |
Shareholder's Equity (3,079,010 shares outstanding for prior year; 11,675,523 shares outstanding for current year) | 61,749,298 | 58,594,469 |
Income Statement
Prior Year | Current Year | |
Revenue | 27,892,296 | 32,784,485 |
CoGS | 15,648,218 | 21,107,672 |
SG&A expenses | 4,107,575 | 5,659,581 |
Operating Income | ?? | ?? |
Interest Expense | 150,366 | 222,825 |
Income Taxes Paid | 530,517 | 585,291 |
Statement of Cash Flows
Prior Year | Current Year | |
Cash Flow from Operating | ||
Net Income | 2,471,248 | 2,000,039 |
Depreciation | 356,963 | 415,850 |
Amortization | 83,563 | 70,234 |
Loss/Gain on sale of PP&E | 1,263,254 | 134,147 |
Cash Flow from Investing | ||
Capital Expenditures | 4,114,863 | 8,859,179 |
Proceeds from sale of PP&E | 228,881,754 | 201,661,245 |
Cash Flow from Financing | ||
Dividends to Shareholders | 4,565,761 | 5,889,694 |
Repurchase of Shares | 15,092,584 | 1,221,081 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started