In mid-2015, Microsoft Corporation had a market capitalization of $340 billion, $35 billion in debt, and $96 billion in cash. If its estimated equity beta was 0.87, estimate Microsoft’s beta.
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In mid-2015, Microsoft Corporation had a market capitalization of $340 billion, $35 billion in debt, and $96 billion in cash. If its estimated equity beta was 0.87, estimate Microsoft’s beta.
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- Apple’s market capitalization in mid-2016 was $484 billion, and its beta was 1.03. At that same time, the company had $25 billion in cash and $69 billion in debt. Based on this data, estimate the beta of Apple’s underlying business enterprise. please show written work!!As of the end of 2020, Microsoft had an annual net income of $51.3 Billion and total assets of $301.3 Billion. Microsoft's total book value of equity as of the end of 2020 was $118.3 Billon. Finally, Microsoft currently has 7.56 billion shares outstanding, and is priced at $243 a share. What is Microsoft's leverage, also known as its equity mulitplier (EM) (remember to use market value of equity)? 7.56 5.42 6.10 8.11In December 2015, General Electric (GE) had a book value of equity of $98 billion, 9.4 billion shares outstanding, and a market price of $31 per share. GE also had cash of $102 billion, and total debt of $199 billion. a. What was GE’s market capitalization? What was GE’s market-to-book ratio? b. What was GE’s book debt-equity ratio? What was GE’s market debt-equity ratio? c. What was GE’s enterprise value? Some balance sheet information is shown below (all values in millions of dollars)
- In December 2018, General Electric (GE) had a book value of equity of $51.5 billion, 8.6 billion shares outstanding, and a market price of $7.93 per share. GE also had cash of $69.9 billion, and total debt of $109.5 billion. a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value? a. What was GE's market capitalization? GE's market capitalization was $enter your response here billion. (Round to one decimal place.) What was GE's market-to-book ratio? GE's market-to-book ratio was enter your response here . (Round to two decimal places.) Part 3 b. What was GE's book debt-equity ratio? GE's book debt-equity ratio was enter your response here . (Round to two decimal places.) Part 4 What was GE's market debt-equity ratio? GE's market debt-equity ratio was enter your response here . (Round to two decimal places.) c. What was GE's enterprise…In December 2018, General Electric (GE) had a book value of equity of $51.3 billion, 8.9 billion shares outstanding, and a market price of $7.92 per share. GE also had cash of $69.7 billion, and total debt of $108.9 billion. a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value? a. What was GE's market capitalization? GE's market capitalization was $enter your response here billion. (Round to one decimal place.)In December 2018, General Electric (GE) had a book value of equity of $51.4 billion, 8.6 billion shares outstanding, and a market price of $8.09 per share. GE also had cash of $69.3 billion, and total debt of $109.6 billion. a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value?
- You have been asked to estimate the value of General Communications, a telecomm firm. General Communications has a debt to capital ratio of 30%, a beta of 1.10 and a pre-tax cost of debt of 7.5%. The firm had earnings before interest and taxes of $ 600 million in 2020 (fiscal year end is March 31, 2020), after depreciation charges of $300 million. The firm had capital expenditures of $360 million, and non-cash working capital increased by $50 million during 2016. The firm also had a book value of capital of $ 2 billion at the beginning of 2019 fiscal year. (The Treasury bond rate is 5%, the market risk premium is 6.3% and the firm has a tax rate of 40%). Assuming that the firm is in stable growth, and that the return on capital and reinvestment rates from 2019 can be sustained forever. Estimate the value of the firm at the beginning of 2020 fiscal year.The HP Corporation has reported the BV of common equity of $9 billion at the end of 2020, with 450 million shares outstanding. The required rate of return is 12%. The company trades in the stock market for $15. The firm is a. overvalued b. undervalued c. not enough informationd. trading at par valueIn 2015 Fitbit (FIT) raised $731 million dollars in an IPO or $20 per share. The company raised this capital in the: IPO Market Secondary Market Primary Market Seasoned Equity Market
- In the year 2010, the average firm in the S&P 500 Index had a total market value of five times stockholders’ equity (book value). Assume a firm had total assets of $10 million, total debt of $6 million, and net income of $600,000. What is the percent return on total market value?Perine, Inc., has balance sheet equity of $5.3 million. At the same time, the income statement shows net income of $763,200. The company paid dividends of $431,208 and has 120,000 shares of stock outstanding. If the benchmark PE ratio is 17, what is the target stock price in one year? Assume the firm will grow at the sustainable growth rate.In the year 2010, the average firm in the S&P 500 Index had a total market value of five times stockholders’ equity (book value). Assume a firm had total assets of $10 million, total debt of $6 million, and net income of $600,000. What is the percent return on equity?
