A firm has 12 million shares outstanding with a current share price of $8.50. The firm has a market-to-book ratio of 3.55 and a book debt-equity ratio of 0.8. If the firm currently has $4 million in cash, what is its enterprise value? Question content area bottom Part 1 A. $125 million B. $180 million C. $102 million D. $83 million E. $121 million

A firm has 12 million shares outstanding with a current share price of $8.50. The firm has a market-to-book ratio of 3.55 and a book debt-equity ratio of 0.8. If the firm currently has $4 million in cash, what is its enterprise value? Question content area bottom Part 1 A. $125 million B. $180 million C. $102 million D. $83 million E. $121 million

Name: Fast pls solve this question correctly in 5 min pls I will give u like
Uploaded: 2024-03-20T06:33:21.000Z
Channel: Bartleby
Description: Fast pls solve this question correctly in 5 min pls I will give u like for sureSurbhA firm has 12 million shares outstanding with a current share price of $8.50. The firm has a market-to-book ratio of 3.55 and a book debt-equity ratio of 0.8. If the

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter11: Venture Capital Valuation Methods

Section: Chapter Questions

Problem 9EP

See similar textbooks

Similar questions

Single infinite stage Michelle wants to value the stock of Gamma Corporation and gathers the following information: Current market price per share . Current book value per share $94 $46 • Perpetual return on equity 18% • Perpetual growth rate 2% • Required return on equity 12% Which a. The value of the company's according to a single stage RI model is closest to: $ Number Round your answer to the nearest cent. b. How the stock is valued on a relative basis (choose the correct one): ○ fairly valued O undervalued O overvalued
MINDTAP Q Search this cou Check My Work еВook The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its before-tax cost of debt is 8%, and its marginal tax rate is O 25%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,183. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets Liabilities And Equity Cash $ 120 Accounts payable and accruals $ 10 Accounts receivable 240 Short-term debt 43 Inventories 360 Long-term debt 1,140 Plant and equipment, net 2,160 Common equity 1,687 Total assets $2,880 Total liabilities and equity $2,880 Calculate Paulson's WACC using market-value weights. Do not round intermediate calculations. Round your answer to two decimal places. 13.86 % Hide Feedback Incorrect Check My Work O- Icon Key 80 DII DD E3 F4 F6 F7 F10 F12 %23 $ & * 4 5 6 7 8 9 del E R Y { P G H K V B N M -
Question 3 You are the treasurer of a mid-cap company and you are analyzing two equity opportunities as potential investments for your working capital of US$100 million. You are given the following information and can only choose one investment. Investment A (cash flows in US$millions) Year Cashflow Year Cashflow 0 Investment B (cash flows in US$millions) Market Return -100 Market Variance 0 1 -100 54 1 67 11% 24% 2 28 76 31 2 89 3 98 3 You are also given the following information to aid with your investment decision: Risk Free Rate 3.50% 98 Investment A (COV/Market) Investment B (COV/Market) Discuss and evaluate whether to pick Investment A or Investment B. 4 121 4 176
Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh Assume the firm has a constant dividend payout ratio and a projected sales increase of 10 percent. All costs, assets, and current liabilities vary directly with sales. The firm is currently at full production. What is the external financing need? Currently, the firm’s sales =$5,700, net income is $520, total assets=8890, dividends=156, A/P =990, LTD= 3730, and common stock=2980, and retained earnings =1200. $146.00 $251.20 $379.60 $421.60 $550.30
QUESTION 13 Two companies, ABC plc and PQR plc, are in the same line of business. ABC plc is financed entirely by equity and its cost of equity is 18% cent. If we assume a world consistent with Miller and Modigliani's first paper on capitaí structure, what will be PÅR plc's cost of equity if it is financed 30% by a 7% bank loan and 70% by equity? O A. 22.7% O B. 20.4% O.18.0% O D.16.5% O E. 12.5%
Q4 A firm is expected to generate a single risky cash flow in one year. The CF will be either $90 (with probability 0.5) or $30 (with probability 0.5). All investors are risk neutral. The interest rate is 0. If the firm decides to borrow $50 and pay the amount as a dividend to shareholders, how much will be the promised return to creditors? A. 60% B. 17.1% C. 40% D. 26.7% E. 50%
Question 1 of 8 <. -/ 1 View Policies Current Attempt in Progress Carla Vista Biotech management plans a $120 million IPO in which the offering price to the public will be $60 per share. The company will receive $47.50 per share. The firm's legal fees, SEC registration fees, and other out-of-pocket costs will total $550,000. If the stock price increases 14 percent on the first day of trading, what will be the total cost of issuing the securities? Total cost $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer I!
ECT Problems A Saved Help Save & E Chec Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 34.0%, and the current dividend yield is 6.00%. Its beta is 1.28, the market risk premium is 12.00%, and the risk-free rate is 3.20%. a. Use the CAPM to estimate the firm's cost of equity. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of equity b. Now use the constant growth model to estimate the cost of equity. (Do not round intermediate calcutations. Enter your answer as a whole percent.) Cost of equity Prev Next re to search N 44
Please solve the problem max in 30-60 minutes thank u 4. For its investment plan, Padlock Company requires funds, all of which will be financed with ordinary shares that have a nominal value of IDR 10,000. Currently, the company distributes dividends for the shares amounting to IDR 2000 and is expected to grow at a constant rate of 5%. If the current market price of the stock is IDR 8000, what is the cost of equity for the stock?
一呂 + || P. %24 LLI %23 3. Saved Help Save & Ex Fillmore West pays a $3 dividend right now and its stock sells for $43. The best estimate of Fillmore's required return is 13 percent What is Fillmore's constant growth rate? Multiple Choice 3.5% 5.6% < Prey 4 of 15 5:06 PM 12/1/2021 nere to search 國直 0 Jer F12 PrtSc Pause Del Home F10 F11 F7 F8 Scr Lk SysRq Break F4 F5 DIO Backspace V. 5 6. 4 L Home 8. LEnter K. 4. H 9 B Alt Gr 目

Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh Suppose a stock had an initial price of $35.74 per share, paid a dividend of $1.82 per share during the year, and had an ending share price of $33.18. Compute the percentage total return. Answer as a percentage to two decimals (if you get -0.0435, you should answer -4.35)
• Exercise 13.3 P416-445 a. Calculate the price of a firm with a plowback ratio of .60 if its ROE is 20%. Current earnings E., will be $5 per share, and k = 12.5%. b. What if ROE is 10%, which is less than the market capitalization rate? Compare the firms price in this instance to that of a firm with the same ROE and E, but a plowback ratio of b=0.