What is enterprise value

Assignment Help Finance Basics
Reference no: EM133076708

A firm has 41 million shares outstanding with a current share price of $4.30 The firm has a market-to-book ratio of 8.5 and a book debt-equity ratio of 2.2. If the firm currently has $18 million in cash, what is its enterprise value?

Reference no: EM133076708

Questions Cloud

What price would there be a margin call : A futures contract covers 5000 pounds with a minimum price change of $0.01 is sold for $30.60 per pound. If the initial margin is $2,500 and the maintenance mar
What is bitsincoin free cash flow : During 2019, Bitsincoins Corporation had EBIT of $100,000, a change in net fixed assets of $400,000, an increase in net current assets of $100,000, an increase
What amount would power company report : What amount would Power Company report on its consolidated SFP at date of acquisition for Goodwill under the Full Goodwill Approach
Estimate company franchise fee rate : Assume that for both companies sales at company-owned stores are the same (on a per store basis) as sales for the same company's franchised stores.
What is enterprise value : A firm has 41 million shares outstanding with a current share price of $4.30 The firm has a market-to-book ratio of 8.5 and a book debt-equity ratio of 2.2. If
What amount would power report as profit for the year : Profits for 20X10 were $1,000,000 (Power) and $950,000 (Spencer). What amount would Power report as Profit for the year (total) in its consolidated I/S for 20X1
What is the cost of equity from retained earnings : Assume that you have been provided with the following firm data: risk-free rate = 2%, market risk premium = 6.55%, and beta = 1.05. What is the cost of equity f
Discuss the salient features of debt securitization : Further discuss the salient features of debt securitization, its types and its mechanism with respect to the housing finance sector
What is the cost of racquet : Asports store purchased tennis racquets for $6486 less 35% for purchasing more than 100 items, and a further 29% was reduced for purchasing the racquels in Octo

Reviews

Write a Review

Finance Basics Questions & Answers

  What will be cost of equity after the switch

The Border Crossing has no debt and a cost of capital of 11.2 percent. Assume the firm switches to a debt-to-equity ratio of .25 and issues bonds at par.

  What are the operating cash flows in each year

Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $44,000 and will be depreciated straight-line over 3 years

  Maximize profitability

Toxemia Salsa Corporation manufactures five flavors of salsa. Last year, Toxemia generated net operating income of $40,000. The following data was taken from last year's income statement segmented by flavor;

  Definition of a prokaryotic species and a eukaryotic species

Explain the difference between the definition of a prokaryotic species and a eukaryotic species ( in other words, why is it difficult to define a "species "

  How could ma introduce the point of encounter

How could MA introduce the point of encounter (POC) with patients and ensure continuity of personal connection during the transition to an EHR system?

  15-year fixed rate loan at the same rate how much more

maria is debating between two different mortgages for 155000. she found a 20-year fixed rate loan at 7.35 and 15-year

  Does buying the hybrid make sense

Using the idea of discounted future values, does buying the hybrid make sense? How long does one have to own the hybrid to reap the benefits? Be sure to detail your analysis.

  What would the cost of that capital be

A company's perpetual preferred stockcurrently trades at $80 per share and pays a $6.00 annual dividendper share. If the company were to sell a new preferred issue,it would incur a flotation cost of 4%. What would the cost of that capital be?

  Differences between disparate treatment and adverse impact

1. Discuss the similarities and differences between "prejudice" and "stereotype." Provide 2 examples of each term.

  Properly label the equilibrium price and quantity

Properly label the equilibrium price and quantity. Then show what will happen to equilibrium if the City Council imposes a price ceiling at 16.

  Default risk premium on the corporate bonds

A company's 5-year bonds are yielding 7% per year. Treasury bonds with the same maturity are yielding 5.2% per year, and the real risk-free rate (r*) is 2.75%.

  Determine the maximum you would be willing to pay

The cash flow from the investment is expected to increase by 3 percent per year forever. If alternative investments of similar risk earn a return of 11 percent

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!

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