Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please Answer All Four :) 1. Company X has an equity value of $1,000M, total debt of 200M, cash & cash equivalents of 100M and

Please Answer All Four :) image text in transcribed
1. Company X has an equity value of $1,000M, total debt of 200M, cash \& cash equivalents of 100M and a net debt balance of 100M. They do not hold any minority interests or preferred stock. What would be the enterprise value for Company X ? a) $700M b) $800M c) $900M d) $1.100M 2. How would you calculate the enterprise valuation once you have calculated the company's mean or median EV/EBITDA multiple and LIM PE ratio for the peer group? a) Multiple the company's EV/EBITDA by the mean or median multiple b) Divide the company's EV/EBITDA by the mean or median multiple c) Multiple the company's LTM PE ratio by the mean or median multiple d) Divide the company's LTM PE ratio by the mean or median multiple 3. P/E ratios are NOI most appropriate for which of the following situations? a) Companies with similar capital structure b) Companies with positive earnings c) Companies with negative earnings d) Mature lifestyle companies 4. Which of the following ratios are NOI included in the course as some of the most common multiples for calculating enterprise value? a) EV/EBITDA b) EV/ Sales c) EV/EBIT d) PEG ratio

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_2

Step: 3

blur-text-image_step3

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

The Bank Credit Analysis Handbook

Authors: Jonathan Golin, Philippe Delhaise

2nd Edition

ISBN: 0470821574, 978-0470821572

More Books

Students also viewed these Finance questions

Question

6. Identify seven types of hidden histories.

Answered: 1 week ago

Question

What is human nature?

Answered: 1 week ago