am. 104. Wildhorse Motors is a chain of used car dealerships that has publicly traded stock. Using the adjusted book value approach, you haveestimated the value of Wildhorse Motors to be $44,700,000. The company has $40.0 million of debt outstanding. Its stock price is$5.90 per share, and there are 1,010,000 shares outstanding. What is the going-concern value of Wildhorse Motors?The going concern value of Wildhorse Motors is $

Going concern value refers to the value of a company as an operating business reality, assuming…

Answered: Wildhorse Motors is a chain of used car…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An analyst's calculation of Bear Corporation's enterprise value is $3.2 billion. Bear has $389 million in cash, $750 million in debt, and 35 million shares outstanding. What is this analyst's valuation of one share of Bear Corp's stock? Enter your answer in dollars and round to the nearest cent. Do not include the dollar sign ($).
A public company has a book value of $128 million. They have 20 million shares outstanding, with a market price of $4 per share. What inference can be drawn about the market's opinion on the company's assets?
David's Watersports Firm is considering a public offering of common stock. Its investment banker has informed the company that the retail price will be $16.85 per share for 550,000 shares. The company will receive $15.40 per share and will incur $180,000 in registration, accounting, and printing fees. A. What is the spread on this issue in percentage terms? What are the total expenses of the issue as a percentage of total value (at retail)? B. If the firm wanted to net $15.99 million from this issue, how many shares must be sold?
Tucker’s National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker’s is going to use all of its excess cash to repurchase sharesof stock. What will the stock price per share be after the stockrepurchase is completed?
Tucker’s National Distributing has a current market value of equityof $10,665. Currently, the firm has excess cash of $640, total assetsof $22,400, net income of $3,210, and 500 shares of stock outstanding.Tucker’s is going to use all of its excess cash to repurchase sharesof stock. What will the stock price per share be after the stockrepurchase is completed?
Suppose Buyer Company in the problem above had invested $2,400 directly in Target’s common stock one year ago at $40 per share and sold it today at $50 per share. What would the Buyer Company’s dollar profit or loss be?
Suppose Rocky Brands has earnings per share of $2.30 and EBITDA of $30.7 million. The firm also has 5.4 million shares outstanding and debt of $125 million (net of cash). You believe Deckers Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Deckers has no debt. If Deckers has a P/E of 13.3 and an enterprise value to EBITDA multiple of 7.4, estimate the value of Rocky Brands stock using both multiples. Which estimate is likely to be more accurate? The value of Rocky Brands stock using the P/E ratio is $ million. (Round to one decimal place.)
Gamma Industries has net income of $3,800,000, and it has1,490,000 shares of common stock outstanding. The company’s stock currently trades at $67a share. Gamma is considering a plan in which it will use available cash to repurchase 10%of its shares in the open market at the current $67 stock price. The repurchase is expectedto have no effect on net income or the company’s P/E ratio. What will be its stock pricefollowing the stock repurchase?
Gamma Industries has net income of $300,000, and it has 1,875,000 shares of common stock outstanding. The company's stock currently trades at $42 a share. Gamma is considering a plan in which it will use available cash to repurchase 10% of its shares in the open market at the current $42 stock price. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock repurchase? Do not round intermediate calculations. Round your answer to the nearest cent. $
Ocean Power Technologies has $300 million of common equity, with 12.2 million shares of common stock outstanding. If their Market Value Added (MVA) is $176 million, what is the company's stock price? Your answer should be between 27.52 and 50.98, rounded to ? dedmal places with
Edelman engines has $18 million in total assets. It’s balance sheet shows $2 million in current liabilities $10 million in long term debt and $6 million in common equity. It has 300000 common shares outstanding and it’s stock price is $28.20 per share. What is edelmans market / book ratio
Based on the corporate valuation model, Bizzaro Co.'s value of operations is $300 million. The balance sheet shows $20 million of short-term investments that are unrelated to operations, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity. Bizzaro has 15 million shares of stock outstanding. What is the best estimate of the stock's price per share? show work in excel

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