What is the PEG ratio of this transaction

Assignment Help Financial Management
Reference no: EM132022922

Read the following piece from the Motley Fools, and answer the question:

Autonomous vehicle technology is all the rage right now, and that's being reflected in the valuations that both start-ups and established companies are fetching. The latest move in the space is today's announcement that Intel (NASDAQ:INTC) is acquiring Israel-based Mobileye (NYSE:MBLY) in a blockbuster $15.3 billion deal that will immediately and dramatically expand Intel's position in the market for autonomous vehicle technology while giving the chip giant relationships with over a dozen of the most prominent automakers in the world.

Mobileye generated million in revenue last year and million in net income, meaning it's getting taken out at 42.7 times sales and 141.7 times earnings

1. What is Mobileye’s net income last year? (answer the number in million.

2. If the earning growth rate of Mobileye is 50%, what is the PEG ratio of this transaction?

Reference no: EM132022922

Questions Cloud

What are the process of servant leadership : In Business leadership, what are the process of servant leadership; democratic leadership; and enlightened leadership?
What is the fully amortized payment beginning in year six : You are buying a property that will carry a $1,750,000 mortgage. What is the fully amortized payment beginning in Year 6?
Calculate the eac for each copier : Office Automation, Inc., must choose between two copiers, the XX40 or the RH45. The XX40 costs $2, 400 and will last for 5 years.
Distribution channels for internet-based retail : What is the good points as distribution channels for Internet-based retail?
What is the PEG ratio of this transaction : If the earning growth rate of Mobileye is 50%, what is the PEG ratio of this transaction?
What is diversification : What is diversification? Give some examples. Does this impact the financial management of an organization? If so, how? If not, why not?
Possible consequences of neglect in areas : Why is it important to consider these factors in developing new products or improving existing products and the possible consequences of neglect in these areas.
Find the net dollar amount received by ohio : Ohio National Bank purchases a three-year interest rate cap for a fee of 2 percent of notional principal valued at $50 million.
Determine oilco optimal course of action : Oilco must determine whether or not to drill for oil in the South China Sea. If the decision is "not drilling", the option can be sold for $10 million.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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