Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using Chick Today's multiple and Big Z financial data, what is the value of Big Zs equity? Big Z Chicken is a private fast food

image text in transcribed

Using Chick Today's multiple and Big Z financial data, what is the value of Big Zs equity?

Big Z Chicken is a private fast food business located in Georgia. The company sells franchises in the chicken business and charges a 7.00% royalty on all sales of its stores. Here quick summary of Big Z company financials: Fiscal Year 2018 523.00 $1,000,000.00 7.00% 19.00% Company Data # of Stores Revenues per store Royalty on sales EBITDA Margin on Sales Balance Sheet Data Interest bearing debt Shareholder equity Cash and Marketable Securities Fiscal Year 2018 $15,000,000.00 $12,000,000.00 $4,000,000.00 We will compare Big Z against Chick-Today, a leader in the fast food business, that has an enterprise value of $419.00 billion and EBITDA of $110.00 billion Using the multiple for Chick Today, what is a rough estimate for the enterprise value of Big Z chicken? Big Z Chicken is a private fast food business located in Georgia. The company sells franchises in the chicken business and charges a 7.00% royalty on all sales of its stores. Here quick summary of Big Z company financials: Fiscal Year 2018 523.00 $1,000,000.00 7.00% 19.00% Company Data # of Stores Revenues per store Royalty on sales EBITDA Margin on Sales Balance Sheet Data Interest bearing debt Shareholder equity Cash and Marketable Securities Fiscal Year 2018 $15,000,000.00 $12,000,000.00 $4,000,000.00 We will compare Big Z against Chick-Today, a leader in the fast food business, that has an enterprise value of $419.00 billion and EBITDA of $110.00 billion Using the multiple for Chick Today, what is a rough estimate for the enterprise value of Big Z chicken

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: 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

State Owned Enterprise In The Western Economies

Authors: Raymond Vernon , Yair Aharoni

1st Edition

0415727596,1317917685

More Books

Students also viewed these Finance questions