User Account

All Pages

Junior analyst to make valuation of adidas

Assignment Help Other Subject
Reference no: EM132530836

Question1. Fast Food co has an equity beta of 0.8, and leverage of 0.4. The company has a corporate tax rate of 35%. The company is thinking of launching a new subsidiary where the leverage will increase to 0.7, what is be the beta of the NEW company taking into account this different leverage.

Question2.

We have been hired as a junior analyst to make valuation of ADIDAS. We are going to be analyzing. Your boss wants you to calculate the WACC.

You have the following information to calculate the WACC:

The current price of the company is 169 € and total number of shares outstanding is 209 million. The consensus target price of Adidas is 173 €.

The company has issued bonds that have a book value of 1.500 Million € in the balance sheet and a market value of 2.300 Million €. Bonds that are comparable are offering a YTM of 2.25%. The company tax rate is 30%.

Adidas is quoted in the German market where the risk free rate is 1.5% and the market Risk Premium is 5.08%. The company has a beta 0.81.

Reference no: EM132530836

Questions Cloud

Embryo project encyclopedia : Do you think forced sterilization of those deemed genetically inferior is an appropriate way to deal with the disease?
What is the net cash provided by financing activities : The following information relates to the Stockton Company: Bought equipment $5,000. What is the net cash provided by financing activities
Afn equation to forecast broussard additional funds : Broussard Skateboard's sales are expected to increase by 25% from $7.6 million in 2016 to $9.50 million in 2017. Its assets totaled $5 million at the end of 201
Washington farewell address analysis : An in-depth look at the U.S. Constitution and whether today's generations are applying the principles embedded in the Constitution in an appropriate manner.
Junior analyst to make valuation of adidas : We have been hired as a junior analyst to make valuation of ADIDAS. We are going to be analyzing. Your boss wants you to calculate the WACC.
What was Martins net increase in cash : Proceeds from issuance of common stock of $70,000 and Increase in accounts payable of $30,000. What was Martin's net increase in cash
Explain the strategies your business will use : Explain the strategies your business will use to achieve its goals set - Give a detailed description on how your business will promote itself.
What is the year 0 net cash flow-campbell company : The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,170,000, and it would cost another
Karsted air services is now in the final year of a project : Karsted Air Services is now in the final year of a project. The equipment originally cost $21 million, of which 75% has been depreciated.

Reviews

Write a Review

Other Subject Questions & Answers

  Concepts-class consciousness and materialism in relation

Briefly discuss the following concepts: class consciousness and materialism in relation to the conflict tradition of explaining social change.

  Explain current and future issues facing correctional

Identify and explain current and future issues facing correctional and court administrators in addressing and managing potential human service needs.

  Reflect upon the themes and events in the documentary

watch chasing zerohttpwww.safetyleaders.orgpageschasingzerodocumentary.jspread articlepape t. m. guerra d. m. muzquiz

  Describe two system variables in the ronald cotton case

Provide an analysis of the Ronald Cotton case, and include the following: Describe two system variables in the Ronald Cotton case. Explain the significance of each system variable as it relates to the case

  Why does john cage consider

Why does John Cage consider 4'33" music when the performer does not play for the entire time span?

  Analyze results - assume that your experiment produces

before you begin this assignment watch the how to formulate a hypothesis video. then read lab 1 introduction to

  Discuss the pre-boarding screening process

In your opinion, should the pre-boarding screening process for airline passengers be equally strict worldwide, regardless of the nationality of the airline.

  How does kohlbergs theory align with what you have learned

How does Kohlberg's theory align with what you've learned thus far about child and adolescent development?

  Discuss and research postcolonialism

Research "postcolonialism," then use this research to explain the various 'cum.,. __ Tomson Highway's The Rez Sisters (this research must not reference Highway'

  What role does social security play in employee retirement

Federal and state taxes are not the only items withheld from Green Branch Coffee employees' paychecks. There are other items, such as benefits.

  Presents a memory concerning learning

The literacy narrative presents a memory concerning learning and using language, as in Malcom X's literacy narrative of self-improvement, and so your story should also reveal the significance of the described experience

  How advertisers use theory of selective attention to market

Discuss how advertisers use theories of selective attention to market and sell their products. Choose a specific product and provide examples.

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