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?

Q: Suppose a firm pays total dividends of $35,000 out of net income of $200,000. What would the firm's…

A: Total dividends= $35,000 Net income= $200,000 Firm's payout ratio=?

Q: a firm has earnings of $500 million of which 40% will be paid out to investors. the firm has $2.5…

A: When all the earnings available for common shareholders are distributed to common shareholders, the…

Q: Suppose that Papa Bell, Inc.’s equity is currently selling for $50 per share, with 3.5 million…

A: There are 12,000 bonds outstanding and are selling at 94% of par value. Generally, the par value of…

Q: A firm with a return on common equity (ROCE) of 25% has financial leverage of 35 % and a net…

A: Return on common equity (ROCE)= 25% Net borrowing cost (NBC)= 5% Financial leverage (FLEV)= 35%

Q: Company has assets of market value $400 mill. $60 mill worth is cash debt outstanding has market…

A: The financial ratios refer to the ratios calculated using the financial data from the company's…

Q: What is the firm's PEG ratio?

A: PEG ratio displays the relationship between the Earnings growth and the P/E ratio over a specific…

Q: Harper Industries has $900 million of common equity on its balance sheet, its stockprice is $80 per…

A: Computation:

Q: Suppose a company’s equity is currently selling for $37 per share and that there are 2 million…

A: The capital structure of company consist of both debt and equity. Gearing ratio is a ratio used for…

Q: Unida Systems has 40 million shares outstanding trading for $10 per share. In addition, Unida has…

A: Equity = Number of shares outstanding * Price per share = 40 million shares * 10 per share = 400…

Q: Triangular Chemicals has total assets of $95 ​million, a return on equity of 37 ​percent, a net…

A: The sales can be calculated by using the DuPont equation. The Dupont analysis is instrumental in…

Q: firm has net income of $2.3 million.the firms capital structure consists of equity of $15 million…

A: Sustainable Growth Rate(SGR) is the maximum growth rate that can be sustained by the company without…

Q: JJ industries has $450 million of common equity on its balance sheet, its stock price is $40 per…

A: To run the business, firm arrange the funds from different sources by issuing securities. Common…

Q: A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are $100 million, and it…

A: Hence, Total asset turnover is 2. It is obtained by dividing sales of the firm with the total…

Q: What is the net asset value of an investment company with $9,500,000 in assets, $610,000 in current…

A: price per share =(value of the assets- current liabilities)/no of shares outstanding…

Q: A firm has a market value equal to its book value, excess cash of $1,000, and equity worth $20,800.…

A: Excess cash = $1000 Existing number of shares = 6000 Market value = $20,800 Price per share = Market…

Q: A company has $6 billion of net income, $2 billion of depreciationand amortization, $80 billion of…

A: Given data; Net income = $6 billion Depreciation and amortization = $2 billion common equity = $80…

Q: A firm has a market value equal to its book value. Currently, the firm has excess cash of $7,000 and…

A: Share price after declaration of dividend is the price which has been adjusted for the dividend…

Q: A firm has 10 million shares outstanding with a market price of P20 per share. The firm has P25…

A: Given,         Outstanding Shares = 10 million or 10,000,000        Market Value Per Share = P20 per…

Q: Kaye’s Kitchenware has a market/book ratio equal to 1. Itsstock price is $12 per share and it has…

A: The formula to compute debt to capital ratio as follows:

Q: The firm has a net income of $2.3 million. The firm's capital structure consists of Equity of $15…

A: Given information: Net income is $2.3 million Equity is $15 million, Debt is $10 million Company…

Q: A firm has 10 million shares outstanding with a market price of $20 pershare. The firm has $25…

A: The difference of the sum of equity and debt of a company and the cash and cash equivalents is term…

Q: wilson's has 10,000 shares of common stock outstanding at a market price of $35 a share. the firm…

A: Computation of the weighted average cost of capital:Hence, the weighted average cost of capital is…

Q: KMS corporation has assets of $650 million, $65 million of which are cash. It has debt of $216.7…

A: A Leverage ratio is a ratio which shows how much capital is in the form of Debt.

Q: A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25…

A: The value of the firm's operation is calculated by considering the value of equity, debt, and…

Q: Your company has expected future cash flows of $70 million in perpetuity. The company's WACC is…

A: Cashflow in perpetuity = $70 million WACC =12.8% So, Enterprise value = Cashflow/WACC = 70/0.128 =…

Q: A firm earns $60 billion in profits and pays $45 billion in dividends for the year. The firm has 3…

A: Dividend per share for common stockhlders  = Total dividend to common stockhlders / No. of common…

Q: A firm has gross profit of $45 million, EBIT of $20 million, and net income of $8.5 million. If the…

A: EPS stands for earnings per share. EPS means the amount of profit a company makes per share.…

Q: Calculate the degree of financial leverage for a firm with EBIT of $6,000,000, fixed cost of…

A: The degree of financial leverage shows the potential impact of change in operating income that is…

Q: MNO Oil has assets with a market value of $600 million, $64 million of which are cash. It has debt…

A: Stock price is the amount at which a security (or stock) is being traded in the stock exchange…

Q: A firm's current market value of equity is $100 million. It has one million shares outstanding. The…

A: Current market price per share Current market price per share = Market value of equity / Number of…

Q: The firm has a net income of $2.3 million. The firm's capital structure consists of Equity of $15…

A: The net income is the net profit of the company earned during the period. The net income includes…

Q: A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,800 and…

A: Market value of Equity = MVE = Book Value of Equity = BE = $ 7,500Number of shares outstanding, N =…

Q: Clive Limited Company has a cost of debt of 7%, a cost of equity of 11%, and a cost of preferred…

A: WACC is the weighted average cost of capital. It is the overall cost of capital which is used for…

Q: A firm earns $60 billion in profits and pays $45 billion in dividends for the year. The firm has 3…

A: Dividend Payment to common stockholders = Total dividend paid - Dividend Payment to Preferred…

Q: Western Electric has 21,000 shares of common stock outstanding at a price per share of $61 and a…

A: The question is related Weighted Average Cost of Capital.The term cost of capital refers  to the…

Q: A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has…

A: There is a difference between preferred stock and common stock. Preferred stock do not carry any…

Q: Suppose a firm pays total dividends of $420,000 out of net income of $3.7 million. What would the…

A: Dividend payout ratio refers to the fraction of net income that a company pays to its shareholders…

Q: A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has…

A: Number of common shares = 390 million Number of preferred shares = 135 million Preferred dividend =…

Q: dividends per share if the firm used 20% debt financing and the firm followed a strict residual…

A: Summary of the relevant information : Net Free cash flow =$ 138 Million Budget requirement for…

Q: A firm has a total book value of equity of $300,000, a market to book ratio of .33 (one-third), and…

A: Given information : The market value of a company refers to the market price of the stock per share…

Q: Based on a discounted free cash flow method, you have estimated the value of a firm to be $270…

A: In free cash flow valuation model, intrinsic value of a company is equal to the present value of its…

Q: A firm has a ROE of 16.875%, asset turnover of 2.5, and an equity multiplier of 1.5. If the firm has…

A: To calculate the net income following figures are to be determinedCalculation of total assets:

Q: A firm has a market value equal to its book value. Currently, the firm has excess cash of $7,000 and…

A: Market Value = Book Value Excess Cash = 7000 Other Assets = 21000 Equity = 28000 Number of shares…