Question
QUESTION 1 Which of the following is not used as a multiple for corporate valuations? Select one: EBITDA Price-Earnings Ratio Long-term assets Revenue QUESTION 2
QUESTION 1
Which of the following is not used as a multiple for corporate valuations?
Select one:
EBITDA
Price-Earnings Ratio
Long-term assets
Revenue
QUESTION 2
An investor is considering the acquisition of 100% of the shares of the Mountain Star Hotel. The following financial information is available for the target:
revenue 2020 | 2.500.000 euro |
EBITDA 2020 | 1,250.000 euro |
net financial debt | 500.000 euro |
The following information is available for three listed competitors:
KPI | ALPHA HOTEL | BETA HOTEL | GAMA HOTEL |
REVENUE MULTIPLE | 1x | 1.5x | 2.0x |
EBITDA MULTIPLE | 5x | 4x | 6x |
Which enterprise value (based on 100% of the shares) can be determined for the Mountain Star Hotel based on an average EBITDA multiple?
Select one:
3,25 Mio. EUR
6,25 Mio. EUR
5,75 Mio. EUR
3,75 Mio. EUR
QUESTION 3
he following is extracted from Dells balance sheet at January 31, 2003.
IN USD MILLIONS | |
NET FINANCIAL ASSETS | 9,167 |
COMMON EQUITY(2,579MILLIONS SHARES OUTSTANDING | 4,873 |
Analysts are forecasting consensus earnings per share of $1.01 for the year ending January 31, 2004. Net financial assets are expected to earn an after-tax return of 4% in 2004. What is the forecast of operating income implicit in the analysts earnings per share forecast?
Select one:
$2,624 million
$2,605 million
$2,972 million
QUESTION 4
t the end of the fiscal year ending June 30, 2003, Microsoft reported common equity of $64.9 billion on its balance sheet, with $49.0 billion invested in financial assets (in the form of cash equivalents and short term investments) and no financing debt. For the fiscal year 2004, the firm reported $7.4 billion in comprehensive income, of which $1.1 billion was after-tax earnings on the financial assets. This month Microsoft is distributing $34 billion of financial assets to shareholders in the form of a special dividend.
Calculate Microsofts return on common equity (ROCE) for 2004.
Select one:
9.7%
none of these answers
1.69%
11.4%
QUESTION 5
At the end of the fiscal year ending June 30, 2003, Microsoft reported common equity of $64.9 billion on its balance sheet, with $49.0 billion invested in financial assets (in the form of cash equivalents and short term investments) and no financing debt. For the fiscal year 2004, the firm reported $7.4 billion in comprehensive income, of which $1.1 billion was after-tax earnings on the financial assets. This month Microsoft is distributing $34 billion of financial assets to shareholders in the form of a special dividend.
What effect would you expect the dividend payout to have on the value of Microsoft shares?
Select one:
There is not enough information provided to make a prediction.
It will decrease the value of shares.
It will have no effect on share value.
It will increase the value of the shares
$2,238 million
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