What is the intrinsic enterprise price-to-book ratio

Assignment Help Finance Basics

Reference no: EM131491160

Question: A Simple Growth Forecast and a Simple Valuation (Easy) An analyst prepares the following reformulated balance sheet (in millions):

Core operating income (after tax) for 2012 was $990 million. The required return for operations is 9 percent. For ease, use beginning-of-year balance sheet numbers where pertinent in calculations.

a. What was the core return on net operating assets for 2012?

b. Prepare a growth forecast of operating income and residual operating income for 2013 based on this financial statement information.

c. Value the equity based on the information.

d. What is the intrinsic enterprise price-to-book ratio?

Reference no: EM131491160

Questions Cloud

Write a research plan for the research : ACC8000 Research in Accounting Practice - What problems have staff encountered in using the new system and what suggestions do staff have to improve the new system?

What is the value of the operations based on these forecasts : A No-growth Forecast and a Simple Valuation (Easy) An analyst calculates residual operating income of$35.7 million from financial statements for 2012.

Discuss about health informatics : Which of the following is true about health informatics? (select all that apply) Which of the following groups of variables are all direct variables

Create a responsibility assignment matrix for your project : Create a responsibility assignment matrix (RAM) for your project, and justify your response. Create a responsibility assignment matrix (RAM) for your project.

What is the intrinsic enterprise price-to-book ratio : A Simple Growth Forecast and a Simple Valuation (Easy) An analyst prepares the following reformulated balance sheet (in millions).e operating income.

Describe what information you can gain : What information you can gain from each that will assist you in aligning your work with that strategic direction. Why are the documents beneficial to workplace?

Calculate the enterprise price-to-book ratio : Simple Valuation with Sales Growth Rates (Medium) An analyst forecasts that the current core return on net operating assets of 15.5 percent will continue.

What is the forward enterprise price-earnings ratio : Two-Stage Growth Valuation (Medium) An analyst develops the following pro fonna at the end of2012 for a firm that uses a 9 percent hurdle rate for its operation

Which statement is true regarding surface : Which of the following statements is true regarding surface acting? Which of the following is an argument used against emotional intelligence

User Account

All Pages