What is the value of the operations based on these forecasts

Assignment Help Finance Basics
Reference no: EM131491163

Question: A No-growth Forecast and a Simple Valuation (Easy) An analyst calculates residual operating income of$35.7 million from financial statements for 2012, using a required return for operations of 10 percent. She also forecasts residual operating income at the same level for 2013 and years after on net operating assets of $1,257 million at the end of2012.

a. What is the analyst's forecast of operating income for 2013?

b. What is the value of the operations based on these forecasts?

c. What is the forward enterprise PIE ratio implied by the forecasts?

Reference no: EM131491163

Questions Cloud

Legal segregation across the south : How did the liberty of blacks give way to legal segregation across the South after 1877?
What is the effect of increasing the asset turnover : When is the forecasted growth rate in residual operating income the same as the forecasted growth rate in sales?
Analyze the trade-offs between inputs for the productivity : Analyze the trade-offs between inputs for the productivity improvements. Analyze the advantages and disadvantages of global sourcing versus producing in U.S.
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?

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