Presents market and profit data for three companies

Assignment Help Finance Basics

Reference no: EM131137118

Exhibit 14.12	Company 1	Company 2	Company 3
Market Data
Share Price	25	16	30
Shares Outstanding	5	8	15
Short-term debt	25	15	30
long-term debt	50	70	40
Operating Profit
EBITDA	25	30	59
EBITA	22	23	51

Exhibit 14.12 presents market and profit data for three companies. Using this data, compute enterprise-value-to-EBITDA and enterprise-value-to-EBITA for Companies 1 and 2. Is the net difference between Company 1 and Company 2 the same for both ratios? If not, why might this be? If Company 3 has nonoperating assets value at $50 million, what are the company's appropriate enterprise-to-EBITDA and enterprise-value-to-EBITA multiples?

Reference no: EM131137118

Questions Cloud

Used to transfer natural gas throughout its network : Northwest Natural Gas has a network of pipes that are used to transfer natural gas throughout its network. The following pipe network has pipe flow capacities in gallons per minute as shown. What is the maximum flow capacity for the system if the com..

What is difference between beneficence and nonmaleficence : Does the principle of autonomy guarantee a person the right to do something that is harmful to oneself? To others? Explain your response with ethical rationale. What is the difference between beneficence and nonmaleficence? Give examples of each fr..

Write a paper that describes jewish holy days : Write a paper that describes one of the following Jewish holy days:- Rosh Hashanah - Yom Kippur - Sukkot - Hanukkah - Purim - Passover - Shavuot.

What is the role of health care reform in shifting the focus : What is the role of health care reform in shifting the focus from a disease-oriented health care system toward one of wellness and prevention, and how does nursing fit into this shift?

Presents market and profit data for three companies : Exhibit 14.12 presents market and profit data for three companies. Using this data, compute enterprise-value-to-EBITDA and enterprise-value-to-EBITA for Companies 1 and 2.

Describe differences in the aca and apa ethical codes : Read the section "Course Case Study" and analyze the behavior of the counselor, as a professional, that you consider unethical or unprofessional. Write a brief summary of the questionable behavior. Substantiate the summary with reasons for your an..

Estimate the minimum torque and power required : Estimate the minimum torque and power required to drive the mixer. Explain your answer in clear detail and show your work.

Prepare powerpoint presentation for my digital media class : Digital media has changed the ways ideas, information, and arguments in society are communicated both locally and globally.

Perpetuating an individualist corporate culture : The value of teams is often described in the work product created by teams versus individuals. Using available research, how does team work differ from individual work, and how can the use of rewards enhance and promote teamwork, rather than perpetua..

User Account

All Pages