Question
Toto Inc. is a private firm that produces industrial laser equipment. It has expected EBIT of $12,5 million this year.The company currently has 17,0 million
Toto Inc. is a private firm that produces industrial laser equipment. It has expected EBIT of $12,5 million this year.The company currently has 17,0 million shares, $13,0 million cash, and no debt.It also has a plan to issue 67,5 million shares.
Calculate the share price of Toto Inc. based on the average EBIT multiple of similar companies:
| Ray Products Corp | Byce-Frasier,Inc | Fire Industries | |
| Market value of equity | 280 | 250 | 130 |
| value of debt | 45 | 50 | 15 |
| cash | 4 | 16 | 9 |
| EBIT | 16 | 17 | 7 |
Step by Step Solution
3.30 Rating (153 Votes )
There are 3 Steps involved in it
Step: 1
To calculate the share price of Toto Inc based on the average EBIT multiple of similar companies you ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing An International Approach
Authors: Wally J. Smieliauskas, Kathryn Bewley
6th edition
978-0070968295, 9781259087462, 978-0071051415
