Estimate the value of common stock using the enterprise

Assignment Help Financial Accounting

Reference no: EM133328332

Question: Tompkins Bank is trying to value Ithaca Beer Co. using comparable valuation techniques. Ithaca Beer's estimated EBITDA for the coming year is $11M and the median forward enterprise value to EBITDA ratio of comparable firms is 7.15. The market value of Ithaca Beer's debt is $30M and it has no outstanding preferred stock and 1M shares of common stock. Estimate the value of common stock using the enterprise value to EBITDA ratio.

Reference no: EM133328332

Questions Cloud

Review of accounting for a merchandising business : ACC 211 Penn Foster College created to add the Income Statement and the Statement of Cash Flows as new worksheets in the already existing file that contains

How much must the federal reserve change interest rates : Plot the short-run aggregate supply, long-run aggregate supply, and aggregate demand curves and show the dynamics of (i) a negative permanent supply shock

Why all three bases be used in profitability analysis : Profits might be compared with sales, assets or stockholder equity or shareholder fund. Why all three bases be used in profitability analysis

How are these two notions related to the moral revolution : And how are these two notions related to the moral revolution and to the bad conscience discussed by Nietzsche in On the genealogy of morals?

Estimate the value of common stock using the enterprise : FINANCE 499 Cornell University The market value of Ithaca Beer's debt is $30M and it has no outstanding preferred stock and 1M shares of common stock. Estimate

Calculate the activity-based rate of setups : machine hours Inspections $75,000 14,000 inspections Based on the above information calculate the activity-based rate of setups (round to nearest cent)

Characteristic of high reliability organizations : On aircraft carriers, lower level officers may override superior officers when they are more knowledgeable.

Review the note disclosures in targets 2020 annual report : Review the note disclosures in Targets 2020 annual report and identify at least three items reported as noncurrent (long-term) liabilities

Who were the pre-socratics : Who were the Pre-socratics? See beginning. Choose a Pre- socratic philosopher to quote and describe his contributions to philosophy.

User Account

All Pages