User Account

All Pages

Compute the market value of equity

Assignment Help Accounting Basics
Reference no: EM133169523

Question - Make the following Assumptions:

Tangible Asset Value = 16,200,000

Required Return on Tangile Assets = 16%

Required Return on Equity = 24%

Forecast Net Income for next period (year) = 4,800,000

Capitalization Rate for Excess earnings to compute Intangible Asset Value = 30%

Current Market Value of Interest Bearing Liabilities = 12,000,000

Required - Compute the Market Value of Equity using the Excess Earnings Approach?

Reference no: EM133169523

Questions Cloud

Calculate the expected return of the price series : Calculate the expected return of the price series at the end of the eighth period using the natural log return
What is the amount of net cash generated : What is the amount of net cash generated from operating activities reported in Ayala's 2022 statement of cash flows, excluding interest and taxes
Calculate fury road company diluted earnings per share : Fury Road's after-tax net income for 2021 was $2 million, and the company is subject to a 40% tax rate. Calculate Fury Road Company diluted earnings per share
Journalize the companys purchase of inventory : On August 1, 2022, The Cove at Mill Lake, Inc., purchased inventory costing $44,000 by signing a 12%, six-month, Journalize the companys purchase of inventory
Compute the market value of equity : Capitalization Rate for Excess earnings to compute Intangible Asset Value = 30%. Compute the Market Value of Equity
What is the value of the stock today : The dividend should grow rapidly - at a rate of 41% per year - during Years 4 and 5; What is the value of the stock today
What is the company wacc : Common stock: 560,000 shares outstanding, selling for $74 per share; the beta is 1.17. What is the company WACC
Podcast on duolingo : Identify the problems Luis von Ahn was trying to solve? What keeps users motivated to continue with the Duolingo app? Why?
What is monte carlo simulation : What is Monte Carlo simulation? What principles underlie its use, and what steps are followed in applying it?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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