Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What is Flash Memory WACC by using the other companies information? Flash Memory, Inc. Micron Technology 2007 2008 2009 30-Apr-10 (a) 2007 2008 2009 30-Apr-10
What is Flash Memory WACC by using the other companies information?
| Flash Memory, Inc. | Micron Technology | |||||||
2007 | 2008 | 2009 | 30-Apr-10 (a) | 2007 | 2008 | 2009 | 30-Apr-10 (a) | ||
Sales ($ millions) | 77 | 81 | 89 | 5,688 | 5,841 | 4,803 | |||
EPS ($) | 1.52 | 0.09 | 1.68 | -0.42 | -2.10 | -2.29 | 1.46 | ||
Dividend per share ($) | -- | -- | -- | -- | -- | -- | |||
Closing stock price ($) | n/a | n/a | n/a | 7.25 | 2.64 | 10.56 | 9.35 | ||
Shares outstanding (millions) | 1.492 | 1.492 | 1.492 | 769.1 | 772.5 | 800.7 | 847.6 | ||
Book Value per share ($) | 11.43 | 11.52 | 13.20 | 10.08 | 8.00 | 5.81 | 6.61 | ||
ROE | 13.28% | 0.78% | 12.75% | -4.13% | -26.21% | -39.43% | 21.00% | ||
Capitalization (book value) | |||||||||
Debt | 28% | 34% | 34% | 24% | 31% | 40% | 33% | ||
Equity | 72% | 66% | 66% | 76% | 69% | 60% | 67% | ||
Beta coefficient | n/a | 1.25 | |||||||
SanDisk Corporation | STEC, Inc. | ||||||||
2007 | 2008 | 2009 | 2010 | 2007 | 2008 | 2009 | 2010 | ||
Sales ($ millions) | 3,986 | 3,351 | 3,567 | 189 | 227 | 354 | |||
EPS ($) | 0.84 | -8.82 | 1.83 | 3.71 | 0.20 | 0.09 | 1.47 | 1.29 | |
Dividend per share ($) | -- | -- | -- | -- | -- | -- | |||
Closing stock price ($) | 33.17 | 9.60 | 28.99 | 39.84 | 8.74 | 4.26 | 16.34 | 13.90 | |
Shares outstanding (millions) | 227.7 | 225.3 | 227.4 | 229.3 | 49.8 | 50.0 | 49.4 | 50.3 | |
Book Value per share ($) | 22.64 | 15.27 | 17.18 | 18.13 | 3.72 | 3.63 | 5.65 | 5.48 | |
ROE | 3.70% | -57.74% | 10.63% | 17.87% | 5.40% | 2.36% | 26.06% | 18.90% | |
Capitalization (book value) | |||||||||
Debt | 15% | 22% | 21% | 19% | 0% | 0% | 0% | 0% | |
Equity | 85% | 78% | 79% | 81% | 100% | 100% | 100% | 100% | |
Beta coefficient | 1.36 | 1.00 | |||||||
(a) Security analyst estimates for year-end EPS $ and Return on Equity; actual data on April 30, 2010, for all other items.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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