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Pellagia is a nationwide retail chain specializing in women’s apparel. The company has 135 million shares outstanding, 30 percent of which are publicly traded with a current market price of $5.63 per share. The company is expected to earn a net income of $38 million in the next twelve months.
What is the current enterprise value of Pellagia?
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- Dahlia Colby, CFO of Charming Florist Ltd., has created the firm’s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 10 percent to $330 million. Current assets, fixed assets, and short-term debt are 25 percent, 70 percent, and 15 percent of sales, respectively. Charming Florist pays out 25 percent of its net income in dividends. The company currently has $121 million of long-term debt and $49 million in common stock par value. The profit margin is 9 percent. 1. Based on Ms. Colby’s sales growth forecast, how much does Charming Florist need in external funds for the upcoming fiscal year? 2. Construct the firm’s pro forma balance sheet for the next fiscal year 3. Calculate the external funds neededCheryl Colby, CFO of Charming Florist Ltd., has created the firm’s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 15 percent to $179.4 million. Current assets, fixed assets, and short-term debt are 20 percent, 90 percent, and 15 percent of sales, respectively. The company pays out 40 percent of its net income in dividends. The company currently has $27.2 million of long-term debt, and $13 million in common stock par value. The profit margin is 10 percent. Prepare the current balance sheet for the firm using the projected sales figure. Based on the sales growth forecast, how much does the company need in external funds for the upcoming fiscal yearbased on the corporate valuation model , sg telecom total corporate value is $750 million. its. balance sheet shows $100 million notes payable, $200 million long term debt, $40 million common stock, and $160 million of retained earnings with a Wacc of 10%. if the company has 16 million shares of stock outstanding, what is the price per share?
- Elliot-Cole is a publicly owned international corporation, with operations in over 90 countries. Netincome has been growing at approximately 15 percent per year, and the stock consistently tradesat about 20 times earnings.To attract and retain key management leadership, the company has developed a compensation plan in which managers receive earnings in the form of bonuses as well as opportunities to pur-chase shares of the company’s stock at a reduced price. In general, the higher the company’s net income each year, the greater the benefit to management in terms of their personal compensation. During the current year, political unrest and economic upheaval threatened Elliot-Cole’s busi-ness operations in three foreign countries. At year-end, the company’s auditors insisted that man-agement write off the company’s assets in these countries, stating that these assets were “severely impaired.” Said one corporate official, “We can’t argue with that. Each of these countries is a realtrouble…Triangular Chemicals has total assets of $95 million, a return on equity of 37 percent, a net profit margin of 5.2 percent, and an equity multiplier of 2.48. How much are the firm's sales?Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $4.4 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $7.4 million next year. Assets Liabilities and Equity Current assets $ 1,980,000 Current liabilities $ 1,672,000 Fixed assets 3,700,000 Long-term debt 1,800,000 Equity 2,208,000 Total assets $ 5,680,000 Total liabilities and equity $ 5,680,000 If fixed assets have enough capacity to cover the increase in sales and all other assets and current liabilities are expected to increase with sales, what amount of additional funds will Psy Ops need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.
- Triangular chemicals has total assets of $107 million, a return on equity of 35 percent, a net profit margin of 5.5 percent, and an equity multiplier of 2.25. How much are the firm’s sales? The company’s total sales are Round to one decimal place.Dearborn Supplies has total sales of $210 million, assets of $108 million, a return on equity of 30 percent, and a net profit margin of 7.6 percent. What is the firm's debt ratio?CPA Corporation is a steel manufacturer that finances its operations with 40 percent debt, 10 percent preferred stock, and 50 percent equity. The interest rate on the company’s debt is 11 percent. The preferred stock pays an annual dividend of $2 and sells for $20 a share. The company’s common stock trades at $30 a share, and its current dividend (D0) of $2 a share is expected to grow at a constant rate of 8 percent per year. The flotation cost of external equity is 15 percent of the dollar amount issued, while the flotation cost on preferred stock is 10 percent. The company estimates that its WACC is 12.30 percent. Assume that the firm will not have enough retained earnings to fund the equity portion of its capital budget. What is the company’s tax rate? • 30.33% • 38.12% • 32.87% • 35.75%
- The value of Broadway-Brooks Inc.'s operations is $846 million, based on the corporate valuation model. Its balance sheet shows $70 million in accounts receivable, $40 million in inventory, $40 million in short-term investments that are unrelated to operations, $20 million in accounts payable, $150 million in notes payable, $90 million in long-term debt, $25 million in preferred stock, $150 million in retained earnings, and $300 million in total common equity. If the company has 18 million shares of stock outstanding, what is the best estimate of the stock's price per share? (Round your answer to 2 decimal places.)Cornerstone Corporation is a large construction company in Boston, Massachusetts. Their income statement for last year indicated a net income of $12,500,000, and the corporation has 1,100,000 shares of common stock outstanding. The current stock price of Cornerstone Corporation on the Boston stock exchange is $13.75 per share. It is looking to expand its operation to the neighboring cities and will be issuing 400,000 extra shares and expects to have a net income of $16,000,000 by the end of the current year. Assuming the company’s price to earnings ratio remains at its current level, what will be the company’s stock price one year from now? The PE ratio is a very common method used by investors to get a quick calculation of the market’s perception of a company. Evaluate the formula used to calculate the PE ratio focusing on the limitations of this method of valuation?Harper Industries has $900 million of common equity on its balance sheet, its stockprice is $80 per share, and its market value added (MVA) is $50 million. How many commonshares are currently outstanding?