Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Pick the best answer to each question and explain. You are researching XMI Corporation (XMI). XMI has shown steady earnings per share growth (18% a year during the last seven years) and trades at a very high multiple to earnings (its P/E is currently 40% above the average P/E for a group of the most comparable stocks). XMI has generally grown through acquisition, by using XMI stock to purchase other companies whose stock traded at lower P/Es. In investigating the financial disclosures of these acquired companies and talking to industry contacts, you conclude that XMI has been forcing the companies it acquires to accelerate the payment of expenses before the acquisition deals are closed. As one example. XMI asks acquired companies to immediately pay all pending accounts payable, whether or not they are due. Subsequent to acquisition, SMI reinstitutes normal expense payment patterns. What are the effects of XMI’s pre-acquisition expensing policies? The statement is made that XMI’s “P/E is currently 40% above the average P/E for a group of the most comparable stocks.” What type of valuation model is implicit in that statement? Richardson, a new analyst at Guardian Capital, is asked to evaluate three companies that are retailers of men’s clothing: Diamond Co., Renaissance Clothing, and Deluxe Men’s Wear. Richardson stars his analysis by evaluating the characteristics of the men’s retail clothing industry. He finds few barriers to new retail entrants, high intra-industry rivalry among retailers, low product substitution costs for customers, and a large number of wholesale clothing suppliers. While conducting his analysis, Richardson discovers that Renaissance Clothing included three non-recurring items in their most recent earnings release: a positive litigation settlement, a one-time tax credit, and the gain on the sale of a non-operating asset. To estimate each firm’s intrinsic value, Richardson applies appropriate discount rates to each firm’s estimated free-cash flows over a ten-year time horizon and to the estimated value of the firm at the end of the ten-year horizon. Based on Richardson’s industry analysis, which of the following characteristics of men’s retail clothing retailing would positively affect its profitability? The industry’s: Entry costs. Substitution costs. Number of suppliers. Which of the following statements about the reported earnings of Renaissance Clothing is most accurate? Relative to sustainable earnings, reported earnings are likely: Unbiased. Upward biased. Downward biased. Which valuation model is Richardson applying in his analysis of the retailers? Relative value Absolute value Sum-of-the-parts Michelle Lee, a junior technology analyst at Guardian, asks the director of research for advice as to which valuation model to use for VEGA, a fast growing semiconductor company that is rapidly gaining market share. The director of research states that “the valuation model selected must be consistent with the characteristics of the company being valued.” Lee tells the director of research that VEGA is not expected to be profitable for several more years. According to management guidance, when the company turns profitable, it will invest in new product development; as a result it does not expect to initiate a dividend for an extended period of time. Lee also notes that she expects that certain larger competitors will become interested in acquiring VEGA because of its excellent growth prospects. Which valuation model should the director of research most likely recommend Lee use to estimate the value of VEGA? Free cash flow Dividend discount P/E relative valuation.
Can the idealism of individual liberty survive in an era of unprecedented acts of terror against the United States? Should our principles be more important to us than our security and safety as citizens?
Determine the types of inventories these companies currently manage and describe their essential inventory characteristics. Analyze how each of their goods and service design concepts are integrated.
Number of hours required per unit is 4 hours and there are 8 working hours per day. There are 20 working days in each month. How many units can 25 workers in a month without overtime? Jim? Laughlin, the director of communications for Life is? Good, e..
What are some common job titles for and duties of the contemporary I/O professional associated with Work-life balance - Historical development of Work-life
What factors might contribute to low or high growth rates in a country? How can sustainable long-run economic growth rate be realized?
Do you think there are cases where hospitals and healthcare organizations artificially inflate their own rankings?
We learn in this module about the impacts that organizational culture and organizational structure have on outcomes that are important at the organizational, team, and individual levels, and internationally. Discuss the importance of organizational c..
What is your interpretation of capital resources available in organization? What would you include in capital request based on sound due diligence-feasibility?
A tax on dairy products is one public policy initiative that the government might consider. Perform appropriate economic analysis to explain how such a tax could be used to address the animal welfare and environmental concerns raised in the article. ..
There are countless ethical issues that exist in business today. Research and identify an ethical dilemma and report it here to th group.
Your next assignment: ABC is now interested in learning about Hooker Furniture’s material handling and packaging situation.
Activities define more generally than work packages how the work will get done. The estimated duration for an activity must be based on the estimated quantity of resources required to perform the activity. Based on analysis of actual cost it is possi..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd