What would be the intrinsic value of a share

Assignment Help Finance Basics

Reference no: EM131923156

Question: 1. Company X is in the household goods industry. The stocks of companies in that industry have consistently had P/E ratios that have averaged 8.4. Company X most recently reported net income of $42,000 and there were 55,500 shares of common stock outstanding.What would the estimated value of Company X stock using this information?

2. A firm's EV / EBITDA ratio has historically been 7.4with little variation. It's current EBITDA is $680. If the firm currently has $1,900 in debt, $400 cash, and 135shares of stock outstanding, what would be the ‘intrinsic value' of a share of its stockusing this information?

Reference no: EM131923156

Questions Cloud

Prepare a research proposal about gun control : Provide the term, your definition and what possible interpretations would/could a reader surmise if you failed to define the term.

Write about your thoughts and key takeaways from the article : Week TWO will cover managing growth. Search the web for articles about companies that successfully or unsuccessfully managed growth, and then share.

Estimate the distance travelled in km : To find the results of the following two questions, estimate the distance travelled in km by using the following relationships: 96km = 1 degree of longitude

How can you back your approaches up with sources : What are the ethical approaches? How can you back your approaches up with sources? What might an oppositional claim be and how can you rebut?

What would be the intrinsic value of a share : A firm's EV / EBITDA ratio has historically been 7.4with little variation. It's current EBITDA is $680. If the firm currently has $1,900 in debt, $400 cash.

Explain what is bonding critique of efficiency wage models : Describe how the firm sets an efficiency wage above the competitive level. Explain what is the bonding critique of efficiency wage models?

Was it an ada disability : Arneson paid Sanders's full salary until April 5, but refused to allow him to return to work. Sanders sued Arnson, alleging a violation of the ADA.

At what price would you expect the firm to sell : Even Better Products has come out with a new and improved product. As a result, the firm projects and ROE of 20%, and it will maintain a plowback ratio of 0.30.

Why is the principal-agent problem relevant to understanding : Why is the principal-agent problem relevant to understanding how CEOs should be compensated?

User Account

All Pages