Calculate this company intrinsic value

Reference no: EM132210991

Question - For Purple company, which has $600,000 in debt and $400,000 in equity at the end of last year, assuming that average return on equity is $450,000, net income is $100,000, equity capital is 8%, average number of shares issued is 10,000 and growth rate is 0, calculate this company's intrinsic value using Residual Income Model (RIM).

Reference no: EM132210991

Questions Cloud

Analyze and provide a recommendation on the type of erp : Enterprises are mostly comprised of many applications that are either custom-built, acquired from a third party, or are from a legacy system.

What difference does it make whether they do or do not : Whether they answer the "so what?" and "who cares?" questions. Probably some do, some don't. What difference does it make whether they do or do not?

Discussion about agile project management : Essentially, Agile project management means using the best process through empowered teams, customer involvement.

Evaluate your current personal computer : Evaluate your current personal computer and distinguish among its hardware components, operating systems, programs, and applications.

Calculate this company intrinsic value : For Purple company, which has $600,000 in debt and $400,000 in equity at the end of last year, calculate this company's intrinsic value using Residual Income

Determine administrative issues and topics : MSA600 Determine administrative issues and topics that can be researched within the private, public and not-for profit sectors.

Contingency approaches to leadership : Describe a time when you used one or more of the contingency approaches to leadership

Calculate the expected stock price : When S(0) = $84, calculate each of the following: The expected stock price in 17 days; and The standard deviation of the stock price in 17 days

Managing people and promoting collaboration : A list of three theories, concepts, or strategies that resonated with you most with regard to managing people and promoting collaboration. Focus on concepts

Reviews

Write a Review

Required(*) Message

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages