User Account

All Pages

Closed the acquisition of gulf aviation

Assignment Help Finance Basics
Reference no: EM131117711

Gulf Aviation generates $800 million in revenue per year, with no material growth. The consolidated revenues for DefenseCo are $1.5 billion in year 1, $1.8 billion in year 2 (the year of the acquisition), and $2.5 billion in year

3. If DefenseCo closed the acquisition of Gulf Aviation on October of year 2, what is the apples-to-apples organic growth for DefenseCo in year 2 and year 3? How does organic growth differ from the growth in reported revenues? Assume Gulf Aviation revenues are consolidated into DefenseCo only after the acquisition close date and that the ?scal year closes for both companies on December 31 of each year.

Reference no: EM131117711

Questions Cloud

Percent rate of return : The 15-year bonds of Jones Paper Mill have a face value of $1,000, a 6.75 percent coupon, and pay interest annually. What is one of these bonds worth to you today if you require a 7.5 percent rate of return?
Describe the concepts and purposes of restorative justice : Conduct research using the library, news reports, Internet, and videos to find information on restorative justice, inmate forgiveness, and the right to privacy.
Determine equity cash flow for year : Using the methodology outlined in Exhibit 6.16, (chapter 6) determine equity cash flow for year 1. Use the growing -perpetuity formula based on equity cash flow) to compute BrandCo's equity value. Assume cost of capital is 12% and cash flows are ..
Investments of similar quality : Calculate the price of a $1,000 face value 10 yr, 4% coupon bond with annual payments if investments of similar quality are yielding 5.2%? Is this bond selling at a discount, premium, or par value?
Closed the acquisition of gulf aviation : Gulf Aviation generates $800 million in revenue per year, with no material growth. The consolidated revenues for DefenseCo are $1.5 billion in year 1, $1.8 billion in year 2 (the year of the acquisition), and $2.5 billion in year
East coast yachts issue : How many of the coupon bonds must East Coast Yachts issue to raise the $45 million? How many of the zeroes must it issue? In 30 years, what will be the principal repayment due if East Coast Yachts issues the coupon bonds? What if it issues the zero..
Explain the pros and cons of each given method : Explain the pros and cons of each method and make a recommendation to the company. In your response, be sure to include a discussion of issuing long-term bonds, issuing additional stock, and securing venture capital.
A new automated inventory system : The Clayton Manufacturing Company is considering an investment in a new automated inventory system for its warehouse that will provide cash savings to the firm over the next five years. The firm's CFO anticipates additional earnings before interes..
Weighted cost of capital for kjwe : If the current risk-free rate is 7% and the expected market return is 14.5%, what is the weighted cost of capital for KJWE? Assume the company has a beta of 1.20 and a marginal tax rate of 40%.

Reviews

Write a Review

Finance Basics Questions & Answers

  A large international bank has a trading book whose size

a large international bank has a trading book whose size depends on the opportunities perceived by its traders. the

  Extruded elements had net income of 25000000 last year and

extruded elements had net income of 25000000 last year and 26250000 this year in line with its long-term earnings

  How much will mayann have accumulated

After 2 years she put the accumulated amount into certificate of deposit paying 7.5% compounded semi- annually for 1 year. When this certificate matures, how much will Mayann have accumulated?

  Which are negative covenants that might be be found

Which of the following are negative covenants that might be found in a bond indenture?

  An american business pays 10000 15000 and 20000 to

an american business pays 10000 15000 and 20000 to suppliers in japan switzerland and cananda respectively. how much in

  Pays of the lenders at a markdown of 30%

Different resources acknowledged at a loss of 2% on net gathering and pays of the lenders at a markdown of 30%. Acknowledgment costs add up to Rs. 3,000 yet the same is paid by the firm.

  A put option if purchased and held for 1 year the exercise

a put option if purchased and held for 1 year. the exercise price on the underlying asset is 40. if the current price

  What was swan depreciation and amortization expense

If the firm's EBITDA was $5,000 and its fixed costs were equal to $1,750, then what was Swan's depreciation and amortization expense during the same period?

  What is the difference between investment-saving schedule

1. what is the difference between investment-saving schedule and wacc-investment opportunities schedule?2. do you think

  Prepare all elimination entries needed in a three-part work

P1  On January 1, 2007, Hebron, Inc. purchased 75 percent of the outstanding stock of Jasper, Inc. for $1 million. At the date of acquisition Jasper's common stock and retained earnings account balances were $500,000 and $700,000, respectively.

  Trevor price bought 10-year bonds issued by harvest foods

trevor price bought 10-year bonds issued by harvest foods five years ago for 997.22. the bonds make semiannual coupon

  Compute net present value and profitability index of project

Compute the net present value and profitability index of each project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd