Reference no: EM132600090
Suppose you forecast Target's EBIT for the year ending January 31, 2013, to be $5,352 million, and you forecast Target's depreciation and amortization to be $2,361 million. A research analyst determines that an appropriate forward-looking EV/EBITDA multiple for Target is 6.9 times. Based on this information,
Question 1: Estimate Target's enterprise value, or EV.
Question 2: Next, incorporating the value of Target's debt, estimate the firm's value of equity.
Question 3: Finally, based on 679.1 million shares outstanding, estimate the intrinsic value per share and compare it with Target's stock price on January 31, 2012, of $50.81.
Question 4: Based on this analysis, is Target's stock overvalued or undervalued?
|
How much the company received from the sale of these bonds
: On January 1, 2020, Larkspur Inc. issued $580,000 of 4-year, Use Excel or a financial calculator to determine how much the company received from the sale
|
|
Maximum transmission for wavelengths
: Orange light of 600 nm and violet of 360 nm are illuminating the thin film of index of refraction 1.2, which is surrounded by air.
|
|
How to prepare an adjusting entry
: How to prepare an adjusting entry for workbooks used in workshops and sold to clients. The value of workbooks remaining in the storeroom is now $1300
|
|
Determine the allocation of income at the end
: On January 2, 2018, Jeffrey invests $82,000 cash for a 20 percent interest in the partnership. Determine the allocation of income at the end of 2018
|
|
Estimate target enterprise value or ev
: Based on 679.1 million shares outstanding, estimate the intrinsic value per share and compare it with Target's stock price on January 31, 2012, of $50.81.
|
|
Estimate the free cash flows to the firm for free cash inc
: Estimate Free Cash Inc.'s year 3 terminal value. Estimate the free cash flows to the firm for Free Cash Inc. for each of the next three years.
|
|
What is the amplitude a of wave
: A fisherman notices that his boat is moving up and down periodically without any horizontal motion, owing to waves on the surface of the water.
|
|
How much is credited to deferred income
: The present value of 1 at 10% is .75 for three periods. How much is credited to deferred income upon the receipt of the grant
|
|
What will be the expected equity return or cost of equity
: What will be the expected equity return (or cost of equity) for a firm that has a cost of capital of 10 percent, a cost of debt of 6 percent
|