answer quickly The following Information is lor Cougar Corp, an applance manufacturer. Glven this Information determine Cougar's Implieddiscount rate.Market value of$26,452equityBook value ofequity$10,835ROE15.2%Market'sexpectedgrowth rate6.0%O 26XO 9.8XO 88%D 9 2%

Return on Equity: It is the tool used for measuring a company's financial performance. It helps in…

Answered: The following Information is l'or…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Valuation Using Price --NOA Multiple The following table provides summary data for Cerner Corporation and itscompetitors, Eclipsys Corporation and McKesson Corporation. (in millions) Center Eclipsys McKesson Company assumedvalue - - $1, 110 $17, 119 Equity assumed value - - $1, 110 $15, 270 Net operating assets $1, 328 $208 $8, 354 Book valueof equity $1, 132 $208 $6, 505 Net nonoperating obligations (assets) $196 $0 $1,849 Common shares outstanding 80.4shares 54.0 shares 288.8 shares (a) Compute the price to net operating assets ratio for both Eclipsys and McKesson. (Round your answers to two decimal places.) Eclipsys Answer McKesson Answer (b) Use Eclipsys and McKesson ascomparables, along with the rounded price to NOA ratios from part (a), and then estimate for Cerner its companyintrinsic value, its equity intrinsic value, and its equity intrinsic value per share. (Round the intrinsic value and equityintrinsic value to the nearest million and the value per share to the nearest…
using the table find the folloing for the four firms: Enterprise value to EBITDA Ratio Price-Earnings multiole PEG raio Cpmpany Market Value (OMR million) Net Income (OMR million) Earnings Growth Market Value of Equity (OMR million) Market Value of Debt (OMR million) Cash (OMR million) EBITDA (OMR million) Happy 117.95 22.5 4% 53.07 64.87 41.25 43.85 Smart 112.35 20.25 4.5% 59.53 52. 79 45 44.88 Kind 116.26 21 4.65% 69.76 46.5 63.95 28.20 Cheerful 120 24 5% 42 78 62.4 44.32
Given:Avarege trade receivables of afirm is40.000,average finished goodsis 50.000, cost of goods sold is 200000 and net sales is 250.000. Whatis trade receivables turnover? a. 250.000/40.000b. 40.000/ 200.000c. 40.000/250.000d. 200.000/ 40.000==========5. Activity Ratios are used in the assessment ofa) The financial risk of the companyb) the profitability of the assetsc) the short term debt repayment capacity of the firmd)the efficiency of the asset or the source analyzed
Given:Avarege trade receivables of afirm is40.000,average finished goodsis 50.000, cost of goods sold is 200000 and net sales is 250.000. Whatis trade receivables turnover? a. 250.000/40.000 b. 40.000/ 200.000 c. 40.000/250.000 d. 200.000/ 40.000 ========== 5. Activity Ratios are used in the assessment ofa) The financial risk of the companyb) the profitability of the assetsc) the short term debt repayment capacity of the firm d)the efficiency of the asset or the source analyzed
Using the following information for Walnut Ltd , Calculate the value per share using the Asset based method . £m £m Non Current Assets 180 Current Assets 75 Current Liabilities (25) 50 230 Financed by: Ordinary Shares (25p) 138 Reserves 32 8% Loan notes 60 230 The disposal value of the fixed assets is estimated at £130m and the realisable value of current assets is estimated at £35m. Recent profit after tax is £27m and a sector P/E ratio is 12 Group of answer choices 31p per share 64p per share 14.5p per share 25p per share
Assume the following data for U&P Company: Debt (D) = $100 million; Equity (E) = $300 million; rD = 6%; rE = 12%; and TC = 30%. Calculate the after-tax weighted average cost of capital (WACC): Multiple Choice A) 10.5% B) 10.05% C) 15% D) 9.45%
Adams Inc. has the following data: rRF = 4.00%; RPM = 7.00%; and b = 1.20. What is the firm's cost of common from retained earnings based on the CAPM? Group of answer choices 11.53% 12.40% 12.03% 11.78% 12.65%
Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction. Company Number ofShares PurchasePrice SellingPrice Commissions TotalCost Proceeds Gain(or Loss) Buy Sell Odd Lot an audio and video products manufacturer 700 $27.37 $34.25 3% 3%
1. Information on the Black PLC fixed income investment portfolio is the following (in EUR): Company A Company B Company C Classification Available for sale Held to maturity Held to maturity Cost 35 000 40 000 53 000 Market value, 31 Dec 2013 39 000 38 000 52 000 Market value, 31 Dec 2014 38 000 37 000 55 000 What is the balance sheet carrying value of the Black PLC investment portfolio as 31.12.2014? The balance sheet carrying value of Black Inc.'s investment portfolio would be higher if which of the securities had been reclassified as held for trading security? Explain why. 2. Cellphone Inc. acquires 50% of Battery AG in 2014 and needs to record investment on its balance sheet. Year ending 2014 Cellphone Inc Battery AG Revenue 1700 1350 EBIT 153 135 Net Income 75 68 Total Assets 1421 1283 Shareholders' equity 735 706 Under which accounting method (full consolidation, proportionate consolidation, equity method) profit margin of Cellphone…
21-Assume that the sales of MNC LLC are OMR 10000, total cost OMR 7000 and fixed cost OMR 2000, find out P/V ratio. O a. None of the given options b. 0.5 O c. 0.2 O d. 1.428
Para Inc is trading at a forward (EV/FCFF1) Ratio of 20, a forward (EV/ (EBIT1 (1-Tc)) ratio of 10 and (EV/ Capital) ratio of 2. Based on the information, answe the following A. Para Inc. Return on capital equal to ? B. Para Inc. Growth rate equal to ? C. Weighted average cost of capital equal to?
The following information is taken from Tanaka Bhd for the year ended 31 December2020.Preference dividend declared and fully paid in 2020: RM100,000Ordinary dividend declared and fully paid in 2020: RM3,960,000Preference share marketable price per unit at 31 December 2020: RM4.60Ordinary share marketable price per unit at 31 December 2020: RM9.00 Industry average ratioi. Current ratio 2.3 : 1ii. Quick ratio 1.1 : 1iii. Asset turnover 2.0iv. Profit margin 4.0%v. Earnings per share RM0.46vi. Rate of return on total assets 11.0% From the industry average, identify and comment on Tanaka Bhd’s profitability and shortterm liquidity.

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The following Information is l'or Cougar Corp, an applance manufacturer. Given this Information determine Cougar's implied discount rate. Market value of equity $26,452 Book value of equity $10,835 ROE 15.2% Market's expected growth rate 6.0% O 28% 0 9.8% O 88% 09.2%