Find the best estimate for the firms value

Assignment Help Corporate Finance
Reference no: EM1347521

Based on the corporate valuation model, Bernile Inc.'s value of operations is $750 million. Its balance sheet shows $50 million of short-term investments that are unrelated to operations, $100 million of accounts payable, $100 million of notes payable, $200 million of long-term debt, $40 million of common stock (par plus paid-in-capital), and $160 million of retained earnings. What is the best estimate for the firm's value of equity, in millions?
a. $429
b. $451
c. $475
d. $500
e. $525

Reference no: EM1347521

Questions Cloud

Google business operation strategy : Synthesize the product, vertical and geographical scope of Google's endeavors and evaluate the effectiveness of their corporate strategy in creating value
Illustrate what would shoppers see when they shopped : Illustrate what would shoppers see when they shopped in Wal-Mart and the other "big box" stores that sell so many imported items
Find the energy of the electromagnetic radiation : A spring with spring constant 13 N/m hangs from the ceiling. A ball is attached to the spring and allowed to come to rest. It is then pulled down 8.5cm and free. The ball makes 26 oscillations in 18 s seconds.
Cvp analysis and income taxes : Diego Motors is a small car dealership. On average it sells the car for $25,000 which it buys from the manufacturer for $22,000. Each month, Diego Motors pays $50,000 in rent and utilities and $60,000 for salespeople's salaries.
Find the best estimate for the firms value : The companye valuation model, Bernile corporation value of operations is 750 million dollar. Its balance sheet demonstrate 50 million dollar of short-term investments unrelated to operations.
Tcp procedure for estimating rtt : Let the TCP procedure for evaluating RTT. Assume that α = 0:5. Let SampleRTT1 be the Most recent sample RTT, let SampleRTT2 be the next most recent sample.
What is the force constant of the spring : When a potential difference of 140 V is applied to the plates of a parallel-plate capacitor, plates carry a surface charge density of 27 nC/cm2. What is the spacing between the plates.
Explain output at different levels of capital and labor : Assume you are looking at data for an economy that uses only two inputs, physical capital and labor. The table shows output for different combinations of labor.
Question on cvp analysis : Compute the annual breakeven point in dollar and in unit sales for shop 48? Make a CVP graph showing cost and revenue data for shop 48 from zero level activity up to 17,000 pairs of shoes sold in year, what would be shop 48's net operating income o..

Reviews

Write a Review

Corporate Finance Questions & Answers

  Make journal entry to record reacquisition of the stock

On June 15, Bunting Company reacquired 12,000 shares of its dollar 10 par value common stock for $18 per share. Bunting uses cost method to account for treasury stock.

  Valuation of stock through growth model

Valuation of stock through growth model - Are the PVGO figures correlated with the analyst estimated EPS growth rates? Would you think these two "growth" metrics should be correlated? Why or why not?

  Computation of sustainable growth rate

Computation of sustainable growth rate and Can Stieben's actual growth rate in sales be different from its sustainable growth rate? Why or why not? How can Stieben change its sustainable growth?

  Explain vpn works

Explain ciphertext and describe how you would test a piece of ciphertext to estimate quickly if it was likely the result of transposition?

  Find standard deviation for each index

The following are monthly percentage (%) price changes for 4 market indexes. So calculate the average monthly rate of return for each index and Standard deviation for each index

  Find the expected return on siebling''s common stock

Select the best option of Investment among various interest compounding and find the expected return on Siebling's common stock?

  Questions based on ratio analysis

Questions based on Ratio analysis, Standard deviation, and SWOT analysis - International trade occurs primarily because of relative price difference among nations.

  Explain markets expectations about future of economy

Finish the given assignment by entering the data in a M.S. excel spreadsheet & using graphing capabilities in Excel to create the yield curve.

  Evaluating financial statement data

Horizontal analysis is a technique for evaluating financial statement data and Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

  Financial statement required to expense for stock options

Accounting for Stock-Based Compensation, to employee stock benefits, including shares issued under the stock option plans and under the company's Stock Participation Plan, collectively called "options.

  Second national bank total sources of liquidity

Fed accept non-bank financial institutions to buy money from the discount window during mortgage crisis and even allowed non-banks to swap mortgages for Treasury securities and also determine the 2nd National Bank's total sources of liquidity

  Evaluate the value of her position at maturity

Evaluate the value of her position at maturity and using the quotes on Euro futures and calculate the value of her position at maturity

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