Market value of equity-what is the value-to-ebita ratio

Assignment Help Financial Accounting

Reference no: EM131286234

1. A firm has $600 market value of equity and $300 market value of debt. The firm also has $100 in nonconsolidated subsidiaries and $50 in excess cash. If the firm’s expected EBITA is $100, what is the value-to-EBITA ratio?

2. A firm has 1,200,000 shares of stock outstanding with a price per share equal to $14. There are 10,000 bonds outstanding, priced at $1,125 each. The cost of equity is 14 percent, the cost of debt is 8 percent, and the corporate tax rate is 40 percent. What is the WACC?

Reference no: EM131286234

Questions Cloud

What is the value per share utilizing market value approach : You are now becoming an expert at valuing companies. You have been consulted to value an industrial firm. The enterprise value of the firm is $10.0 billion. The company has no straight debt. What is the company’s equity value utilizing the market val..

What are benefits of financial analysis : What are benefits of financial analysis? Name three ratios, their benefit, and Explain briefly why you feel they are more important than the others.

Operating profit-adjusted for capitalized operating leases : Apex Industries expects to earn $25 million in operating profit next year. The company pays an operating tax rate of 30 percent. If the value of leased asset is $125 and the cost of debt is 10 percent, what is the approximate after-tax operating prof..

The appropriate beta for firm to use in the wacc : A firm has a target debt-to-equity ratio of 3. Its cost of equity equals 12 percent, its cost of debt is 9 percent, and the tax rate is 34 percent. What is the WACC? An analyst gathers the following information for Firm A and Firm B. Use the informat..

Market value of equity-what is the value-to-ebita ratio : A firm has $600 market value of equity and $300 market value of debt. The firm also has $100 in nonconsolidated subsidiaries and $50 in excess cash. If the firm’s expected EBITA is $100, what is the value-to-EBITA ratio?

Calculate the net tax payable by the trustee : The Alice in Wonderland Family Trust commenced in 2005 when it was settled by a family friend, White Rabbit. The trust has a number of investments and also operates a business. Calculate the net income of the trust and the Div 6E net income, setting ..

Calculate the value per share : A corporation has 5 million shares outstanding. Using the following information, calculate the value per share. The value per share is?

Financial statement disclosure for unearned revenue : Bravo was paid $12,000 in advance for services to be performed. By the end of the year, only one-eighth of the services had been performed. What will be the financial statement disclosure for Bravo's Unearned Revenue at the end of the year?

Entrepreneurs perspective on decision-making : After listening to this entrepreneur’s perspective on decision-making, how would you categorize her decision making style? Include at least two examples that support your choice.

User Account

All Pages