What is the enterprise value-ebitda multiple for company

Assignment Help Financial Management
Reference no: EM13942917

The market value of the equity of Thompson, Inc., is $599,000. The balance sheet shows $38,000 in cash and $209,000 in debt, while the income statement has EBIT of $110,000 and a total of $154,000 in depreciation and amortization. What is the enterprise value-EBITDA multiple for this company?

Reference no: EM13942917

Questions Cloud

What is the discount rate : Henry, a direct descendant of Jefferson Morgan has inherited $450,000. A financial advisor tells her to invest this amount and target an average of at least 8% return over a 30 years. What is the discount rate? Would a beta of 1.1 increase her return..
Calculate the npv and irr for this project : Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid $126,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $581,000 p..
What is the intrinsic price of microsoft today : Assuming Microsoft dividend grows by 3% every year for 10 years and the discount rate is 6%. What is the intrinsic price of Microsoft today and is it more or less than the market price?
What is the length of its cash cycle : Inmoo Company’s average age of accounts receivable is 38 days, the average age of accounts payable is 40 days, and the average age of inventory is 69 days. Assuming a 365-day year, what is the length of its cash (conversion) cycle?
What is the enterprise value-ebitda multiple for company : The market value of the equity of Thompson, Inc., is $599,000. The balance sheet shows $38,000 in cash and $209,000 in debt, while the income statement has EBIT of $110,000 and a total of $154,000 in depreciation and amortization. What is the enterpr..
What is the firms expected rate of return : ABC Inc.'s stock has a 50% chance of producing a 21% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -30% return. What is the firm's expected rate of return? 1. 9.72% 2. 9.88% 3. 7.82% 4. 7.50% 5. 8.37%
Which loan should she sign up for : Susan wants to buy a house for $200,000. US Bank will give her the loan at 3.5% for 30 years if she puts 20% down and Dacotah Bank will give her the loan at 3.8% for 30 years if she puts 10% down. There are NO other options. which loan should she sig..
Discuss systematic and unsystematic risk : Discuss systematic and unsystematic risk, which can be diversified and why? Also discuss some measures of systematic risk and how they can be used to maximize returns and minimize risk.
The yield to maturity remains at its current rate : A 20-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $950. If the yield to maturity remains at its current rate, what will the price be 10 years from now? $950.00 $946.22 $964.80 $863.84 $1,000

Reviews

Write a Review

Financial Management Questions & Answers

  What would be the total return

A stock sells for $20 per share and you purchase 100 shares. If the value of stock doubles to $40 in 1 year what would be the total return? What would be the total return if the required margin where:

  Explain what effect a decrease in the offered sales price

Compute the price of a 3.8 percent coupon bond with 18 years left to maturity and a market interest rate of 6.8 percent" Assume interest payments are paid semi-annually, and solve using semi-annual compounding. Explain what effect a decrease in the o..

  Premium bond making annual payments

Bond X is a premium bond making annual payments. The bond has a coupon rate of 9 percent, a YTM of 7 percent, and has 13 years to maturity. Bond Y is a discount bond making annual payments. This bond has a coupon rate of 7 percent, a YTM of 9 percent..

  Decide to deposit an equal annual contribution

A child is born this year. On its first birthday [after 1 year], the parents decide to deposit an equal annual contribution to the college fund that will earn 8%, compounded annually. How much should they deposit at the end of each year so that it wi..

  What is the annual percentage rate on your account

You are paying an effective annual rate of 14.50 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on your account?

  What is the average cash conversion cycle

En-gene company has a payment cycle of 50 days collection cycle of 47 days and a production cycle of 49 days. What is the average cash conversion cycle?

  Compute the firms market capitalization and enterprise value

Calculate the firm's market capitalization and then calculate the enterprise value. b) Use the CAPM formula to determine the firm's cost of equity

  What is the current price of the common stock

Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects sales and dividends to grow at a rate of 25% for the next 4 years, after which competition will probably reduce the grow..

  Determine the price of the souvenirs

Calculate with explanation the unit costs of the souvenirs. You should state your assumption and determine the price of the souvenirs and explain any other information that might be relevant for deciding the price

  What is the year one operating cash flow

A firm is considering the acquisition of a new machine. The base price is $85,000 and it would cost $15,000 to install. The machine is MACRS 3 year class property and it will be sold after 3 years for $17,000. The machine would also require an increa..

  What is this bonds yield-to-call

Suppose that you have a bond that is currently trading for 1,234.56, has just paid its coupon, has a time-to-maturity of   14 years, has an annual coupon rate of 7.1%, and a face value of $1,000. This bond is unique in that the issuing firm has the r..

  Using the free cash flow method of valuation

Using the free cash flow method of valuation, an analyst determines the value of Company A's stock to be $12 and the value of Company B's stock to be $15. Other things be held constant, what could account for the higher valuation for Company B?

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