Determining the enterprise value jvg inc

Assignment Help Finance Basics
Reference no: EM132509500

JVG Inc., is interested in acquiring Hats 'R' Us, Inc. JVG's CFO has examined similar acquisitions that have occurred in the industry and has found that in the recent past acquirers have, on average, offered an enterprise value that is 6x target's forward EBITDA. If Hats 'R' Us' current EBITDA is $1.5m and it has $3.45m in debt, how much should JVG offer (per share) for Hats 'R' Us'? Assume that Hats 'R' Us' EBITDA is expected to grow at 5% indefinitely, and that it has 300,000 acquisition shares.

Reference no: EM132509500

Questions Cloud

Evaluate different compensation packages for employees : How would you evaluate different compensation packages for employees who are located throughout the world?
Calculate the amount of overhead assigned to oil : Calculate the amount of overhead assigned to oil. A company incurs $1300000 of overhead each year in three departments, Processing
Describe the two possible market signals : Describe the two possible market signals that investors perceive from a firm announcing an increase in its dividend payments to shareholders
Reflect on any information you found most surprising : Reflect on any information you found most surprising. In particular, reflect on the skills that employers seek in college graduates and job candidates.
Determining the enterprise value jvg inc : JVG Inc., is interested in acquiring Hats 'R' Us, Inc. JVG's CFO has examined similar acquisitions that have occurred in the industry and has found
Some key performance indicators : What are some key performance indicators that are used by organizations in which you have been employed?
Explain the concept of performance management : Explain the concept of "performance management." Identify the most prominent types of performance management plans.
Describe the use of technology for managing processes : The article included within unit seven prepared by Rogers, (2013) (ATTACHED) shares thoughts of reported higher levels of crime and resulting incarceration.
Value for abc corporation using dividend discounting model : The cost of equity using the capital asset pricing model is 8%. What is the value for ABC Corporation using the dividend discounting model?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

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