Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are an analyst at investment bank G&S, and you are asked to evaluate the stocks of Surprise Corp. The following table (in Excel)
You are an analyst at investment bank G&S, and you are asked to evaluate the stocks of Surprise Corp. The following table (in Excel) provides summary information for Surprise Corp. and its two close competitors, Bellona, Inc. and Suffolk Co. Part A. Using the average Value/NOPAT multiples of the two peers, what is your estimated Surprise Corp's stock price per share? Part B. Using the average Market Value of Equity /Net Income multiples of the two competitors, what is your estimated Surprise Corp's stock price per share? Part C. Do you think it is reasonable to use the average multiples of Bellona and Suffolk to evaluate Surprise Corp? Briefly explain your answer (no calculation required). Market Value of Firm Market Value of Equity NOPAT Net income Net Nonoperating Obligations (NNO) # of shares outstanding Surprise 683,741 508,043 195,407 8,778.50 Bellona $876,369 512,324 150,587 108,807 364,045 446.3 Suffolk $995,748 913,198 422,515 341,022 82,550 635.2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
PART A Average Market Value fo the Compititors 8763699957482 93605850 Average NOPAT 5123249139182 71...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