Part one-equity valuation

Reference no: EM13785201

Part One: Equity Valuation

Bart Industries is about to be purchased by Kramer Enterprises. Both firms are in the rocks and mineral industry. As one of the founders of Bart Industries, you are concerned about the value of the equity in the firm. You have acquired the following data on your firm:

Bart has 200,000 shares of stock authorized, with 120,000 shares outstanding and held by the current owners.
The free cash flows for next year are estimated to be $642,000.
The WACC for the firm is currently 13%
Bart has $320,000 of outstanding debt.
The growth rate for Bart is estimated to be 5% for the future.
Bart has a surplus of cash in the amount of $985,000.

Required:

What is the value of Bart's equity?

Reference no: EM13785201

Questions Cloud

Analyze and explain how the elements of good talking : Much of the oral communication that goes on in business is the informal, person-to-person communication that occurs whenever people get together. Analyze and explain how the elements of good talking help us to communicate better?

Match for organizational structure and control : A MATCH FOR ORGANIZATIONAL STRUCTURE AND CONTROL--GM BANKRUPTCY emerging fuel-efficient cars has resulted in a move from a GM corporation to a smaller GM company. Selling-off and phasing-out brands along with changing logos are steps toward a new GM.

Assignment on ethics and social justice : ETHICS and SOCIAL JUSTICE

Wrong with partnering with someone simply : How can I be attractive if I am only average-looking? Dress like a whore? Move like a stripper?

Part one-equity valuation : Bart Industries is about to be purchased by Kramer Enterprises. Both firms are in the rocks and mineral industry. As one of the founders of Bart Industries, you are concerned about the value of the equity in the firm. You have acquired the foll..

Analyze ways in which reports are used in court processes : Analyze ways in which reports are used in court processes. Now that you are familiar with report writing techniques, discuss the different reports that you, as a criminal justice officer, will use in the court process

Analyze the major threats to mobile devices : Analyze the major threats to mobile devices, and suggest at least two (2) methods to mitigate the concerns and make the devices more secure from an organizational standpoint. Justify your response.

What is the breakeven point for this new process : Mikey W. Smitty is confident that demand for his “Western Rap” CD will substantially exceed the breakeven point computed in Problem 6-3. So, Mikey is contemplating having his CD cut at a classier (and pricier) studio. What is the breakeven point for ..

Culture affecting the communication issues : Define culture and explain why it is important to understanding communication.

User Account

All Pages