Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Please show work and give numerical answers not just formulas THANK YOU! You want to estimate the value of your company's equity on a per

Please show work and give numerical answers not just formulas THANK YOU!
You want to estimate the value of your company's equity on a per share basis. To do so, you have collected the information below for 3 comparable companies.
Assume that your company has the same expected future growth and reinvestment needs as the comparable companies.
\table[[,Comp 1,Comp 2,Comp 3,],[Current Price,20.00,,32.00,16.00,],[Earnings Per share,1.00,,1.82,0.93,],[BV per Share,6.87,,12.80,5.35,],[Sales per Share,12.62,,18.82,7.62,Mean],[ROE,,15%,14%,17%,],[Net Margin,,8%,10%,12%,],[DE,,0.4,0.5,0.45,]]
Multiples:
PE
P/BK
PS
\table[[Mean,,,],[cos,Mes,,],[Los,cat,,]]
(1)
(2)
(1)(2)
Multiple
Our Company
Comp
Metric
Multiple
Implied
Value
Based on the above information, what would you consider the appropriate value of company under consideration.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Finance questions