User Account

All Pages

Find what is the estimated value per share of bodega inc

Assignment Help Financial Accounting
Reference no: EM132907956

Zubaru Investment Bank is working with the management of Bodega, Inc., a supermarket chain, in order to take the company public in an initial public offering. Selected financial information for Bodega, Inc. is as follows.

Long-term debt (8% interest rate) P 10,000,000
Common equity:
Par value (P1 per share) 3,000,000
Additional paid-in-capital 24,000,000
Retained earnings 6,000,000
Total assets 55,000,000
Net income 3,750,000
Dividend (annual) 1,500,000

Problem 1: If public companies in the business of groceries are trading at a market to book ratio of 2; those in the airline industry are trading at a market to book ratio of 4, those in banking are trading at a market to book ratio of 3, what is the estimated value per share of Bodega, Inc.?

Reference no: EM132907956

Questions Cloud

Breakdown of process routine around towel reuse : What are the reasons for the breakdown of the process routine around towel reuse? How would you test the sustainability of the changes your e commend?
Review the impact of smarter technologies : Review the impact of 'smarter' technologies in the overall budgeting processes when examining forecasting and management control processes.
Demonstrate meaningful understanding of accounting policies : Demonstrate meaningful understanding of accounting policies and accounting standards by critically reviewing academic and non-academic literature
Determine the profit you could generate : Determine the profit you could generate by withdrawing $100,000 from Blades' checking account and engaging in arbitrage before the rates are adjusted
Find what is the estimated value per share of bodega inc : Zubaru Investment Bank is working with the management of Bodega, Inc., What is the estimated value per share of Bodega, Inc.?
Write a bad news letter explaining to the candidate : Write a "Bad News" letter explaining to the candidate (Brad Pitt) that although qualified for the position, he did not get the job of an HR manager.
What is organization logistics strategy : What is your organization's logistics strategy? What are your logistics objectives? How do you measure logistics performance?
What is the resulting equilibrium state called : Discuss how the baht's spot and forward rates would adjust until covered interest arbitrage is no longer possible. What is resulting equilibrium state called
How much higher or lower would cost of goods sold be : Goddard Company has used the FIFO method of inventory valuation. How much higher or lower would cost of goods sold be in the 2020 revised income statement?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the entries in the books of Cookie Bar Corporation

An allowance for uncollectible accounts of 20,000 will be provided. Prepare the entries in the books of the Cookie Bar Corporation

  Which company will report the lowest amount of cash flow

Three different companies each purchased. Which company will report the lowest amount of cash flow from operating activities on the 2020 statement of cash flows

  Variety of means to reduce reported financial leverage

Hiding debt from current and potential investors is nothing new. Over the years, companies have used a variety of means to reduce reported financial leverage in their balance sheets. Can you name of some of these ploys of Financial wizardry?

  Prepare a statement reconciling the branch

The home office recorded a net income for November at P1,125. Prepare a statement reconciling the branch and the home office account

  Advantage of classifying it as an operating cash flow

What advantages do you see for classifying interest expense as an investing cash flow rather than an operating cash flow? What is the advantage of classifying it as an operating cash flow? What is the advantage of classifying it as a financing ca..

  Find what was the amount of the initial investment

Concord Inc is considering an investment project with the characteristics: internal rate of return factor. What was the amount of the initial investment?

  Uncollectible accounts receivable under the allowance method

OPA provided for uncollectible accounts receivable under the allowance method. Provisions were made monthly at 1% of credit sales, bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credit..

  Preparing a budget for june

Selling and administrative expenses for June are budgeted at $32,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $3,000 for the month.

  Record the journal entry at the time of payment

Record the journal entry on September 1, 20x1. Record the journal entry at the time of payment (assume the note is paid in full on the appropriate date).

  Analysis of the coffee shop? opportunity

What is the correct initial cash flow for your analysis of the coffee shop? opportunity?

  Determine the cash outflows for december production

Determine the cash outflows for December production. Bandamere Lighting Inc. uses the sales forecast to plan production. The company produces the magnetic light

  What the equipment should be recorded in blue horizon record

What the equipment should be recorded in Blue Horizon records at? Gross invoice price, net of GST, subject to terms of 2/10, n/30) $14,500

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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