Following is financial information for three ventures: Venture XX Venture YY Venture ZZ After-tax property margins 5% 25% 15% Asset turnover 2.0 times 3.0 times 1.0 times A. Calculate the ROA for each firm. B. Which venture is indicative of a strong entrepreneurial venture opportunity?
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Following is financial information for three ventures:
| Venture XX | Venture YY | Venture ZZ | |
| After-tax property margins | 5% | 25% | 15% |
| Asset turnover | 2.0 times | 3.0 times | 1.0 times |
A. Calculate the ROA for each firm.
B. Which venture is indicative of a strong entrepreneurial venture opportunity?
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- The discounted cash flow model and the corporate valuation model are the most widely used valuation techniques. Often these valuations are accompanied by market multiple analysis, which is based on the fundamental concept that sinar assets should have simlar values. Carlson Co, is a privately owned firm with few investors. Investors forecast their eamings per share (EPS) to reach $3 this coming year The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 11. The estimated intrinsic value of Carlson Co.'s stock will be Market multiple analysis is also used to calculate the value of a company, which is further used to calculate the intrinsic vakre per share of the fim Suppose you have the information given in the following table for Company X. EBITDA Total value of equity Total firm value per share. Year 1 Year 2 $10,680 $12,375 $121,500 $112,500 $182,250 $202,500please check photos F. An ROA model consisting of the product of two ratios provides an overview of a venture ’ s efficiency and profitability at the same time. An ROE model consists of the product of three ratios and simultaneously shows an overview of a venture ’ s efficiency, profitability, and leverage performance. Calculate ROA and ROE models for the 2014 – 2015 and 2015 – 2016 periods. Provide an interpretation of your findings.Question E: Kaj and the venture investors are also interested in how efficiently Scandi is able to convert its equity investment, as well as the venture ’ s total assets, into sales. Calculate several ratios that combine data from the income statements and balance sheets and compare what has happened between the 2014 – 2015 and 2015 – 2016 periods.
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