United Airlines trades at an EV/EBITDA of 8.5x. American Airlines has EBITDA of $6.0 billion. What would be an approximate value of American Airline enterprise value? Choose the closest a. $0.7 billion b. $1.4 billion c. $51.0 billion d. $58.5 billion
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United Airlines trades at an EV/EBITDA of 8.5x. American Airlines has EBITDA of $6.0 billion. What
would be an approximate value of American Airline enterprise value? Choose the closest
a. $0.7 billion
b. $1.4 billion
c. $51.0 billion
d. $58.5 billion
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- In January 2022, United Airlines had a market capitalization of $14.74 billion, debt of $36.27 billion, and cash of $18.06 billion. United Airlines had revenues of $24.46 billion. Southwest Airlines had a market capitalization of $26.56 billion, debt of 12.49 billion, cash of $15.73 billion, and revenues of $15.42 billion. b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines.c. Which of these comparisons is more meaningful?In January 2019, United Airlines (UAL) had a market capitalization of $22.90 billion, debt of $13.40 billion, and cash of $4.00 billion. United Airlines had revenues of $41.30 billion. Southwest Airlines (LUV) had a market capitalization of $27.50 billion, debt of $3.40 billion, cash of $3.70 billion, and revenues of $22.00 billion. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. c. Which of these comparisons is more meaningful? Explain. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. The market capitalization-to-revenue ratio for United Airlines is The market capitalization-to-revenue ratio for United Airlines is enter your response here . (Round to three decimal places.) Part 2 The market…In January 2019, United Airlines (UAL) had a market capitalization of $22.73 billion, debt of $13.63 billion, and cash of $3.81 billion. United Airlines had revenues of $40.87 billion. Southwest Airlines (LUV) had a market capitalization of $27.48 billion, debt of $3.48 billion, cash of $3.65 billion, and revenues of $21.72 billion. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. c. Which of these comparisons is more meaningful? Explain. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. The market capitalization-to-revenue ratio for United Airlines is ______. (Round to three decimal places.)
- Pax Limited showed the following assets and liabilities in its financial statements at 31 December 2018. DETAILS CARRYING AMOUNT FAIR VALUE PPE 10,000,000 14,000,000 Inventory 4,200,000 4,400,000 Long Term Loans (3,500,000) (3,500,000) Account Payable (2,500,000) (2,500,000) 8,200,000 12,400,000 The current market rate for similar transactions is 8.5% per annum. Chelsea Limited planned to acquire all the assets and liabilities of Pax Limited on 1 July 2018 and agreed to pay R13,400,000 in cash on 1 July 2019 in full settlement of the acquisition. Required: Calculate the purchase consideration. Calculate the goodwill or bargain purchase for this transaction. Prepare the journal entries required in the books of Chelsea Limited relating to this transaction.ABC has net operating assets (NOA) of JPY (¥) 56,000 million. The company’s return on common equity (ROCE) is 16%, its return on net operating assets (RNOA) is 12%, its operating profit margin (PM) is 18%, its cost of debt (before tax) is 4% and its tax rate 30%. (i) Calculate ABC’s net financial leverage, to 3 decimal places. (ii) Calculate ABC's operating asset turnover (ATO), to 3 decimal places.Nelson Company's current liabilities are P50,000, its long-term liabilities are P150,000, and its working capital is P80,000. If Nelson Company's debt-to-equity ratio is 0.32, its total long-term assets must equal O P625,000 O P825,000 O P745,000 O P695.000 Hydro Cable wishes to calculate their return on assets (ROA). You know that the return on equity (ROE) is 12% and that the debt ratio is 40%. What is the ROA? 0 4.8% O 20% 0 7.2% O 12% Tech Manufacturing Company realized P15,000,000 in sales, with a cost of goods sold of P6,000,000, gross profit margin of 45% of net sales, operating expenses of P4,500,000, tax rate of 35%, and average total assets of P6,500,000. What is Tech's Return on Assets (ROA)? O 42.5% O 50% O 45% O 47.75%
- The market value of the equity of Nina, Incorporated, is $594,000. The balance sheet shows $33,000 in cash and $204,000 in debt, while the income statement has EBIT of $105,000 and a total of $149,000 in depreciation and amortization. What is the enterprise value-EBITDA multiple for this company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Given:Avarege trade receivables of afirm is40.000,average finished goodsis 50.000, cost of goods sold is 200000 and net sales is 250.000. Whatis trade receivables turnover? a. 250.000/40.000 b. 40.000/ 200.000 c. 40.000/250.000 d. 200.000/ 40.000 ========== 5. Activity Ratios are used in the assessment ofa) The financial risk of the companyb) the profitability of the assetsc) the short term debt repayment capacity of the firm d)the efficiency of the asset or the source analyzedConsider the following data for the firms Acme and Apex: Equity ($ million) Debt ($ million) ROC Cost of Capital Acme 290 145 17% 9% Apex 1,450 483 15% 10% a. Calculate the economic value added for Acme and Apex (round to 2 decimal places). Economic value added for Acme $? million Economic value added for Apex $? million b. Calculate the economic value added per dollar of invested capital for Acme and Apex (round to 2 decimal places)? Economic value added for Acme per dollar Economic value added for Apex per dollar
- 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 analyzedBlossom Systems has total assets of $ 34.050 billion, total debt of $ 8.745 billion, and net sales of $ 22.700 billion. Its net profit margin for the year is 18 percent, while the operating profit margin is 27 percent. What are Blossom’s net income, EBIT ROA, ROA, and ROE? (Round net income to 3 decimal places, e.g. 25.335. Round EBIT ROA, ROA and ROE to 1 decimal place, e.g.12.2%.) Net income $ billion EBIT ROA % ROA % ROE %Ace Industries has current assets equal to $9 million. The company's current ratio is 2.5, and its quick ratio is 2.1. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar. Current liabilities: $ Inventories: $