Estimate the value of a company

Assignment Help Finance Basics
Reference no: EM132375712

You want to estimate the value of a company that has three very different lines of business. It manufactures aircraft, is in the data processing business, and manufactures motor vehicles. How could you use an income approach to value a company such as this - one with three very distinct businesses that will have different revenue growth rates, profit margins, investment requirements, discount rates and so forth?

Reference no: EM132375712

Questions Cloud

What are the proceeds bank discount note : What are the proceeds of a P5,500 bank discount note that is payable at the end of 6 months, but discounted after 5 months, at a 15% discount interest rate?
How much will he receive if the discount rate : If Mike decides to sell the note 5 months after the origin date, how much will he receive if the discount rate is 13.5%?
Greater premium to its present value : Which of the bonds trades at a greater premium to its present value? Show your work and explain how you arrived at your answer.
Financial planning process in details : Identify the steps in the financial planning process in details.
Estimate the value of a company : You want to estimate the value of a company that has three very different lines of business. It manufactures aircraft, is in the data processing business
Assumptions of efficient market hypothesis : Explain what is meant by market efficiency and efficient market hypothesis and describe the following:
What are the proceeds of a php : What are the proceeds of a Php5,500 bank discount note that is payable at the end of 6 months, but discounted after 5 months, at a 15% discount interest rate?
How much will he receive if the discount rate : If Mark decides to sell the note 5 months after the origin date, how much will he receive if the discount rate is 13.5%?
What is the maturity value of the loan : Ms. Jolleena received Php 59,043.75 as proceeds from a loan payable in 1 year and 3 months at 9.5% discount rate. What is the maturity value of the loan?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the expected return on the portfolio

The following information is available in general and about investments in stocks J and K.

  Mirrlees furniture earned 750000 last year and had a 30

mirrlees furniture earned 750000 last year and had a 30 percent payout ratio. how much did the firm add to its

  Growth in sales goal

Explain how would you use the time value of money concept to make a decision on what growth in sales goal would you set for this company so that the company maintains the same operating margin for the next five years.

  What is the effective annual interest rate

The interest rate is 0.574 percent per month. In addition, 5 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its line-of-credit loans.

  What is your monthly payment

What is your monthly payment? What is the total amount of payments made over the life of the loan? How many years will it take to pay off the loan if you pay an extra $100 per month?

  What is the expected price of the stock next year

Gordon & Co.'s stock has just paid its annual dividend of $1.10 per share. Analysts believe that Gordon will maintain its historic dividend growth rate of 3%. If the required return is 8%, what is the expected price of the stock next year?

  Formulate the null and alternative hypotheses for the study

In 1990, the average duration of long-distance telephone calls originating in one town was 9.3 minutes. Formulate the null and alternative hypotheses for the study described.

  What is a share of the stock worth today

If dividends are expected to decline at 8 percent per year, what is a share of the stock worth today?

  Tokens of pascal and from this specification construct

Write a specification for the tokens of Pascal and from this specification construct transition diagrams. Use the transition diagrams to implement a lexical analyzer for Pascal in a language like C or Pascal

  How can businesses use technology and relationships

How can businesses use technology and relationships to reduce their environmental impact?

  What is the cost of common equity

Patton Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 8%.

  What is the convertible bonds conversion premium

A $1,000 par value convertible bond has a conversion price of $50. It is currently selling for $1,120 despite the fact that the bond's coupon rate and the market rate are equal. The common stock obtained upon conversion is selling for $54 per share. ..

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd