You need to estimate the value of Laputa Aviation. You have the following forecasts (in millions of dollars) of its profits and of its futureInvestments in new plant and working capital:Earnings before interest, taxes, depreciation, and amortization (EBITDA)DepreciationPretax profitTax at 30%InvestmentCheck my work mode: This shows what is correct or incorrect for the work you have compAnswer is complete but not entirely correct.757a. Total valueb. Laputa's equity$$ⓇⓇ1$.733340121970YearFrom year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed60% by equity and 40% by debt. Its cost of equity is 18%, its debt yields 9%, and it pays corporate tax at 30%2$9343501522a. Estimate the company's total value.Note: Do not round Intermediate calculations. Enter your answer in millions rounded to the nearest whole amount.b. What is the value of Laputa's equity?Note: Do not round Intermediate calculations. Enter your answer in millions rounded to the nearest whole amount.$ 188486018254$ 11353601827

Name: You need to estimate the value of Laputa Aviation. You have the follo
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Description: You need to estimate the value of Laputa Aviation. You have the following forecasts (in millions of dollars) of its profits and of its futureInvestments in new plant and working capital:Earnings before interest, taxes, depreciation, and amortization

The weighted average cost of capital measures the typical cost a business pays to finance its…

Business

Finance

a. Estimate the company's total value. Note: Do not round Intermediate calculations. Enter your answer in millions rounded to the nearest whole amount. b. What is the value of Laputa's equity? Note: Do not round Intermediate calculations. Enter your answer in millions rounded to the nearest whole amount. Answer is complete but not entirely correct. a. Total value b. Laputa's equity 757

a. Estimate the company's total value. Note: Do not round Intermediate calculations. Enter your answer in millions rounded to the nearest whole amount. b. What is the value of Laputa's equity? Note: Do not round Intermediate calculations. Enter your answer in millions rounded to the nearest whole amount. Answer is complete but not entirely correct. a. Total value b. Laputa's equity 757

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Please interpret the numbers and compare the number, no required to explain the theory. Also answer if the business is a going concern? CKM RATIOS: 2016 2017 2018 2019 2020 2021 Current ratio 0.66 0.58 0.96 0.92 1.06 0.83 Quick ratio 0.43 0.37 0.58 0.53 0.49 0.57 Operating cash flow ratio 0.10 0.01 0.01 0.00 0.02 0.07 PWC RATIOS: 2016 $000 2017 $000 2018 $000 2019 $000 2020 $000 2021 $000 Current ratio 2.37 2.23 2.07 1.89 2.74 2.16 Quick ratio 0.93 0.95 0.81 0.80 1.36 1.01 Operating cash flow ratio 1.02 0.72 0.96 0.47 0.32 0.52
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If total equity decreased by RO10,00oo, then, to balance the accounting equation Select one a. Equity must have decreased by R0.10,000. O b Liabilities must have decreased by R.O.10,000. c. Assets must have decreased by R.O.10,000 O d. Assets must have increased by R.O.10,000.
am. 104.
Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Ayayai Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Sunland Company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for amounts.) (a) Fair Value Method (b) Equity Method Transaction Investment Account Dividend Revenue Investment Account Investment Revenue 1. At the beginning of Year 1, Ayayai bought 30% of Sunland's common stock at its book value. Total book value of all Sunland's common stock was $760,000 on this date. 2. (a) During Year 1, Sunland reported $52,000 of net income. (b) During Year 1, Sunland paid $28,500 of dividends. 3. (a) During Year 2, Sunland reported…
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1. Total Trial Balance on the Debit side is: A. 530000 B. 52000 C. 502000 D. 492000 2. What is the Journal Entry for Dividend declared? A. 10000 B. Dividend debit 10000 and A/P credit C. None of the above D. Dividend 10000 Dividend Payable 10000 3. What is the Depreciation Expense-Equipment balance in the Trial Balance? A.12000 B. 6000 C. 60000 D. 0
Assume the following data for Cable Corporation and Multi-Media Incorporated. Net income Sales Total assets Total debt Stockholders' equity Cable Corporation $ 34,400 364,000 448,000 237,000 211,000 Cable Corporation Multi-Media, Incorporated a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places. Return on Stockholders' Equity Multi-Media Incorporated $ 128,000 2,700,000 % % 970,000 468,000 502,000
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Please do not give solution in image format thanku
Hello, how do I solve this problem? I attached the bottom part of the question and what it's asking for since it wouldn't fit in the screenshot. Assuming that total assets were $3,112,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets % e. Return on stockholders’ equity % f. Return on common stockholders' equity %
The following information is about Green Tea Ltd. Year Net income ($’000 000) Beginning book value of equity ($’000 000) 1 32 42 2 28 39 3 44 47 Required: Calculate Equity value using discounted abnormal earnings valuation method. The cost of capitalis 10%.

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