Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You will have to do several calculations for this assignment. All the valuation calculations will use the EnV:EBITDA valuation estimation method. Do NOT use the

image text in transcribedimage text in transcribed

You will have to do several calculations for this assignment. All the valuation calculations will use the EnV:EBITDA valuation estimation method. Do NOT use the long version (Free Cash Flow method)!

Follow the course mantra. The heart of this assignment is to 1) Determine what you need to calculate. 2) Determine how to calculate it. 3) Explain what the results mean/ what is your conclusion4) What key assumptions limitations/assumptions did you make that could impact your results.

Course Mantra: Determine what question you are trying to answer Are you asking the right question? Determine what you will Measure to answer the question Be able to explain this Do the Calculation Be able to explain how you did this, what assumptions you made. Explain the result in ENGLISH (What does it MEAN?) Communicate the results! Produce a narrative // Use and explain appropriate charts and graphs Evaluate the results (how does it compare?) versus Historyand/or versus Industry Averagesand/or versus Key Competitorsand/or versus Organization's Objective(s)

excel workbook and a word document (report) that addresses the questions below, using the format of the Assignment Write-up Guide. All case exhibits have been provided for you in Excel. Note that there is an optional additional piece to this assignment. The calculations in this assignment should not be that difficult. It is knowing what to calculate and being able to explain the calculations (in the report) that is the essential portion of this assignment.

Assignment Information:

You are to make a recommendation on a company stock immediately after they release their quarterly earnings.

You have limited information about the company, TriQuad. You know (1) the stock price at the end of the day at of their last earnings report, (2) the firm's current stock price, and (3) the number of outstanding shares (315 million) of this publicly-traded company after their last quarterly.Assume that the amount of the company's "net cash" is not changing as it has been constant for the last year ($247 million). The data table is listed below.

Data Table:

Quarterly Quarterly End of Day

Revenue EBITDA Stock Price

Date ($millions) ($millions) ($/share)

Earnings Report 31 Jan 577 456 36.87

30 Mar xx xx 38.51

Earnings Report 31 Mar 589 466 jQuery22403206617867932233_1541809061216??

image text in transcribedimage text in transcribed

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

Financial Management Theory And Practice

Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason

3rd Canadian Edition

017658305X, 978-0176583057

More Books

Students also viewed these Finance questions

Question

Briefly explain at least five different ways of assessing truth.

Answered: 1 week ago

Question

What is meant by the term responsibility accounting? pg5

Answered: 1 week ago

Question

How can the costs of decentralization be minimized? pg5

Answered: 1 week ago