Reference no: EM131957806
Jack has found a really cheap small cap food stock that markets snacks. It has 10 mm shares outstanding, a share price of $15, 40 mm in debt, and 10 mm in cash. It has a cost of debt of 10%. It expects to generate 30 mm in EBITDA, operating cash flow of 20 mm and 10 mm in capital expenditures in the upcoming year. Please show your calculations.
Calculate the market cap of the company?
Calculate the enterprise value or firm value of the company? What is the free cash flow yield(free cash flow to equity)?
What are two basic credit metrics you can calculate with these numbers(hint coverage ratio and one other). Please calculate these two ratios.
What it the EV/EBITDA? Why do we use this metric? If it traded on average at 10X EV/EBITDA the last five years but has a new high margin product being launched, would this look like a cheap multiple all else being equal?
If the generator company has a beta of 1.5, the equity risk premium is 6% and the risk free rate is 3%, what is its cost of equity?
If its tax rate is 30%, calculate the WACC or weighted average cost of capital.
Calculate the discounted cash flow value using the WACC assuming free cash flow to the firm(unlevered) of $15, 19,21, with a 2.5% terminal growth rate beginning in year 4.
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How much taxable gain will piper recognize from the sale
: Piper and Adam formed a partnership. Piper received a 50% interest in partnership capital and profits. How much taxable gain will Piper recognize from the sale?
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What is the firms degree of financial leverage
: Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $5,587,370. The firm's interest expense was $2,425,220.
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Compute ivory corporations current year deduction
: Ivory Corporation, a calendar year, accrual method C corporation, has two cash method, calendar year shareholders who are unrelated to each other.
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List the tools or exams that are used to diagnose
: List the tools or exams that are used to diagnose and list the treatment plan.
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Calculate the market cap of the company
: What are two basic credit metrics you can calculate with these numbers(hint coverage ratio and one other). Please calculate these two ratios.
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What is pierres state income tax deduction
: What is Pierre's 2016 state income tax deduction? How much of the $630 will Pierre include in his 2017 gross income?
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How antibiotic resistance to rifampin
: Think about how antibiotic resistance to Rifampin (an antibiotic used to treat TB) evolves. Then, put the following steps in order
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Calculate the npv for both projects
: To sustain a high growth? rate, the HFGC CEO argues that the company must continue to invest in projects that offer the highest rate of return possible.
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What is its book value at december
: A piece of equipment was acquired on January 1, 2015, at a cost of $32,000, with an estimated residual value. What is its book value at December 31, 2016?
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