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In 2019, return on capitalization of AMC is __________ %, assuming a tax rate of 21%. (hint: interest = coporate borrowings + financial lease obligation + services agreement )
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If the required rate of return (cost of capital) of AMC by debt holders and equity holders is 8%, AMC has outperformed investors' requirement.
True
False
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The average market price per share of AMC in 2019 is $11, with total share outstanding of 103.82 million. Market to book equity of AMC in 2019 is _____.
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Historical, the average annual dividend of AMC is 0.8. At the end of 2019, AMC is traded at the price of $7.3. Assuming dividend payment of AMC continues to be 0.8 per share forever, the annual expected return from equity holders is _____% (hint: using perpetuity formula and round to 2 decimal points)
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However, in fiscal year 2020 ROE of AMC is _____% (hint: using equity value in 2019)
AMC ENTERTAINMENT HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share amounts) Year Ended December 31, 2020 December 31, 2019 December 31, 2018 712.1 $ 362.4 167.9 1,242.4 3,301.3 $ 1,719.6 450.1 5,471.0 3.385.0 1.671.5 404.3 5,460.8 322.7 88.8 1,699.1 278.7 1.710.2 270.9 Revenues Admissions Food and beverage Other theatre Total revenues Operating costs and expenses Film exhibition costs Food and beverage costs Operating expense, excluding depreciation and amortization below Rent General and administrative: Merger, acquisition and other costs Other, excluding depreciation and amortization below Depreciation and amortization Impairment of long-lived assets, definite and indefinite-lived intangible assets and goodwill 856.0 884.1 1,686.6 967.8 1,654.7 797.8 24.6 156.7 498.3 15.5 153.0 450.0 31.3 179.3 537.8 2,513.9 84.3 13.8 5,335.0 136.0 5,195.8 265.0 13.4 (108.1) Operating costs and expenses 5,345.1 Operating income (loss) (4,102.7) Other expense (income): Other expense (income) 28.9 Interest expense: Corporate borrowings 311.0 Finance lease obligations 5.9 Non-cash NCM exhibitor services agreement 40.0 Equity in (earnings) loss of non-consolidated entities 30.9 Investment expense (income) 10.1 Total other expense, net 426.8 Net earnings (loss) before income taxes (4,529.5) Income tax provision (benefit) 59.9 Net earnings (loss) (4,589.4) CONSOLIDATED BALANCE SHEETS 292.8 7.6 40.4 (30.6) (16.0) 307.6 (171.6) (22.5) (149.1) 262.3 38.5 41.5 (86.7) (6.2) 141.3 123.7 13.6 110.1 December 31, 2020 December 31, 2019 $ (In millions, except share data) ASSETS Current assets: Cash and cash equivalents Restricted cash Receivables, net Other current assets Total current assets Property, net 308.3 $ 13.1 91.0 74.6 487.0 2.322.5 265.0 10.5 254.2 143.4 673.1 2.649.2 4.451.5 163.2 2,547.3 0.3 304.6 10,276.4 4,796.0 195.3 4,789.1 70.1 503.0 13,675.8 $ $ $ $ Operating lease right-of-use assets, net Intangible assets, net Goodwill Deferred tax asset, net Other long-term assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other liabilities Deferred revenues and income Current maturities of corporate borrowings Current maturities of finance lease liabilities Current maturities of operating lease liabilities Total current liabilities Corporate borrowings Finance lease liabilities Operating lease liabilities Exhibitor services agreement Deferred tax liability, net Other long-term liabilities Total liabilities Commitments and contingencies Stockholders' equity (deficit): AMC Entertainment Holdings, Inc.'s stockholders' equity: Class A common stock ($.01 par value, 524,173,073 shares authorized; 298.8 257.8 405.4 20.0 12.9 583.6 1,578.5 5,695.8 83.1 4,957.8 537.6 40.5 241.3 13,134.6 543.3 324.6 449.2 20.0 10.3 585.8 1,933.2 4,733.4 89.6 4,913.8 549.7 46.0 195.9 12,461.6 0.5 0.5 176,295,874 shares issued and 172,563,249 outstanding as of December 31, 2020; 55,812,702 shares issued and 52,080,077 outstanding as of December 31, 2019) 1.8 0.5 Class B common stock ($.01 par value, 51,769,784 shares authorized, issued and outstanding as of December 31, 2020 and December 31, 2019) Additional paid-in capital 2,465.6 2,001.9 Treasury stock (3,732,625 shares as of December 31, 2020 and December 31, 2019, at cost) (56.4) (56.4) Accumulated other comprehensive income (loss) 38.7 (26.1) Accumulated deficit (5,335.3) (706.2) Total AMC Entertainment Holdings, Inc.'s stockholders' equity (deficit) (2,885.1) 1.214.2 Noncontrolling interests 26.9 Total equity (deficit) (2,858.2) 1,214.2 Total liabilities and stockholders' equity (deficit) $ 10,276.4 $ 13,675.8 In 2019, what is the total capitalization of AMC (in millions)? (hint: Long term liability = total liability - current liability) AMC ENTERTAINMENT HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share amounts) Year Ended December 31, 2020 December 31, 2019 December 31, 2018 712.1 $ 362.4 167.9 1,242.4 3,301.3 $ 1,719.6 450.1 5,471.0 3.385.0 1.671.5 404.3 5,460.8 322.7 88.8 1,699.1 278.7 1.710.2 270.9 Revenues Admissions Food and beverage Other theatre Total revenues Operating costs and expenses Film exhibition costs Food and beverage costs Operating expense, excluding depreciation and amortization below Rent General and administrative: Merger, acquisition and other costs Other, excluding depreciation and amortization below Depreciation and amortization Impairment of long-lived assets, definite and indefinite-lived intangible assets and goodwill 856.0 884.1 1,686.6 967.8 1,654.7 797.8 24.6 156.7 498.3 15.5 153.0 450.0 31.3 179.3 537.8 2,513.9 84.3 13.8 5,335.0 136.0 5,195.8 265.0 13.4 (108.1) Operating costs and expenses 5,345.1 Operating income (loss) (4,102.7) Other expense (income): Other expense (income) 28.9 Interest expense: Corporate borrowings 311.0 Finance lease obligations 5.9 Non-cash NCM exhibitor services agreement 40.0 Equity in (earnings) loss of non-consolidated entities 30.9 Investment expense (income) 10.1 Total other expense, net 426.8 Net earnings (loss) before income taxes (4,529.5) Income tax provision (benefit) 59.9 Net earnings (loss) (4,589.4) CONSOLIDATED BALANCE SHEETS 292.8 7.6 40.4 (30.6) (16.0) 307.6 (171.6) (22.5) (149.1) 262.3 38.5 41.5 (86.7) (6.2) 141.3 123.7 13.6 110.1 December 31, 2020 December 31, 2019 $ (In millions, except share data) ASSETS Current assets: Cash and cash equivalents Restricted cash Receivables, net Other current assets Total current assets Property, net 308.3 $ 13.1 91.0 74.6 487.0 2.322.5 265.0 10.5 254.2 143.4 673.1 2.649.2 4.451.5 163.2 2,547.3 0.3 304.6 10,276.4 4,796.0 195.3 4,789.1 70.1 503.0 13,675.8 $ $ $ $ Operating lease right-of-use assets, net Intangible assets, net Goodwill Deferred tax asset, net Other long-term assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other liabilities Deferred revenues and income Current maturities of corporate borrowings Current maturities of finance lease liabilities Current maturities of operating lease liabilities Total current liabilities Corporate borrowings Finance lease liabilities Operating lease liabilities Exhibitor services agreement Deferred tax liability, net Other long-term liabilities Total liabilities Commitments and contingencies Stockholders' equity (deficit): AMC Entertainment Holdings, Inc.'s stockholders' equity: Class A common stock ($.01 par value, 524,173,073 shares authorized; 298.8 257.8 405.4 20.0 12.9 583.6 1,578.5 5,695.8 83.1 4,957.8 537.6 40.5 241.3 13,134.6 543.3 324.6 449.2 20.0 10.3 585.8 1,933.2 4,733.4 89.6 4,913.8 549.7 46.0 195.9 12,461.6 0.5 0.5 176,295,874 shares issued and 172,563,249 outstanding as of December 31, 2020; 55,812,702 shares issued and 52,080,077 outstanding as of December 31, 2019) 1.8 0.5 Class B common stock ($.01 par value, 51,769,784 shares authorized, issued and outstanding as of December 31, 2020 and December 31, 2019) Additional paid-in capital 2,465.6 2,001.9 Treasury stock (3,732,625 shares as of December 31, 2020 and December 31, 2019, at cost) (56.4) (56.4) Accumulated other comprehensive income (loss) 38.7 (26.1) Accumulated deficit (5,335.3) (706.2) Total AMC Entertainment Holdings, Inc.'s stockholders' equity (deficit) (2,885.1) 1.214.2 Noncontrolling interests 26.9 Total equity (deficit) (2,858.2) 1,214.2 Total liabilities and stockholders' equity (deficit) $ 10,276.4 $ 13,675.8 In 2019, what is the total capitalization of AMC (in millions)? (hint: Long term liability = total liability - current liability)
