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please answer all question with table. Use Warren Buffet case study of purchase of geico shares in 1995 and use variables. Thanks in advance What
please answer all question with table. Use Warren Buffet case study of purchase of geico shares in 1995 and use variables. Thanks in advance
What is the IRR of Berkshire Hathaway's Geico holdings at the time of the Announcement? Hint 1: Use the Total Market Value of Gieco Shares held by Berkshire Hathaway at the time of Announcement as part of the Terminal Value) Hint 2: Instead of using whole dollar amounts for Total Dividends, Berkshire's Initial and Terminal CF, and Total CF, cite them in millions of dollars i.e., $1,000,000 is stated as $1.00 ) Variables Needed to Analyze the Case 1 Berkshire Hathaway Price per Share before the Announcement 2 Berkshire Hathaway Price per Share after the Announcement 3 Per Share Gain in Berkshire Hathaway after the Announcement 4 Berkshire Hathaway Shares Outstanding 5 Total Market Value of the Gain in Berkshire Hathaway (Note: This is not the total market value of Berkshire Hathaway after the Announcement) 6 Geico Shares held by Berkshire Hathaway 7 Net Gain in Value of Berkshire's Geico Holdings at the $70 offer (Hint: 6(1312) ) 8 Total Market Value of Geico Shares held by Berkshire Hathaway at time of Announcement 9 What did Berkshire Hathaway pay for Geico Shares in 1976? (Note: Assumes they were all purchased at the same time) 10 Geico Shares publicly held 11 Geico Share price before the announcement 12 Berkshire Hathaway price offered for Geico (per share) 13 After the announcement, what Intrinsic Value did the Market place on Geico Stock? (Hint: Intrinsic Value Formula is: 5=7+(11(X13)), where you have to solve for X since X is the Intrinsic Value 14 Applying the IRR as the future growth rate, what might a share of Geico stock be worth in five years after the Berkshire acquisitionStep by Step Solution
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