An analyst's calculation of Bear Corporation's enterprise value is $3.2 billion. Bear has $389 million in cash, $750 million in debt, and 35 million shares outstanding. What is this analyst's valuation of one share of Bear Corp.'s stock?

An analyst's calculation of Bear Corporation's enterprise value is $3.2 billion. Bear has $389 million in cash, $750 million in debt, and 35 million shares outstanding. What is this analyst's valuation of one share of Bear Corp.'s stock?

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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Similar questions

The balance sheet for Quinn Corporation is shown here in market value terms. There are 12,000 shares of stock outstanding. Cash Fixed assets Total Will Market Value Balance Sheet $ 49,300 355,000 Equity $ 404,300 Total In lieu of a dividend of $1.45, the company has announced it is going to repurchase $17,400 worth of stock. What effect will this transaction have on the equity of the firm? Note: Do not round intermediate calculations. Input the amount as positive value. New shares outstanding $ 404,300 $ 404,300 shareholders' equity by How many shares will be outstanding after the repurchase? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Share price What will the price per share be after the repurchase? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
Phelps Labs has assets of $418,000, current liabilities of $126,000, and long-term liabilities of $131,000. There is $38,700 in preferred stock outstanding; 20,000 shares of common stock have been issued. Earnings available to common shareholders are $32,300. If the firm sells at two times book value per share, what will the P/E ratio be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) P/E ratio times
Goodstuff Corporation has total equity of $494 million and 138 million shares outstanding. Its ROE is 10.66 %. The dividend payout ratio is 28.5 %. Calculate the company's dividends per share.
Brenda Limited has an enterprise value of $10 million, total debt of $4 million and 2 million shares outstanding. The latest balance sheet of the firm reports assets worth $8 million. The per-share market value of the equity is: Select one: a. $2.00 b. $3.00 c. $4.00 d. $5.00
ABC's Net Income this year was $20,650,000 and there were 19.5 million shares outstanding. If the firm's Price/Earnings Ratio (P/E Ratio) is 18.7 then what is the firm's share price? Group of answer choices
You are considering a stock investment in one of two firms (AllDebt, Inc., and AllEquity, Inc.), both of which operate in the same industry and have identical EBITDA of $15.5 million and operating income of $8.5 million. AllDebt, Inc., finances its $55 million in assets with $54 million in debt (on which it pays 10 percent interest annually) and $1 million in equity. AllEquity, Inc., finances its $55 million in assets with no debt and $55 million in equity. Both firms pay a tax rate of 21 percent on their taxable income. Calculate the income available to pay the asset—funders’ investment—(the debt holders and stockholders) and resulting return on assets for the two firms. (Enter your dollar answers in millions of dollars. Round all answers to 3 decimal places.) AllDebt AllEquity Income available for asset funders million million Return on asset-funders' investment % %
Verne Corporation has sales of $90952, net income of $788170, total assets of $2039191, and 90952 shares of common stock outstanding. If Verne’s P/E ratio is 11, what is the company's current stock price?
Based on the corporate valuation model, Morgan Inc.'s total corporate value is $200 million. The balance sheet shows $90 million of notes payable, $30 million of long term debt, $40 million of preferred stock, and $100 million of common equity. The company has so million shares of stock outstanding. What is the best estimate of the stock's price per share? 1388 OD 14.12 O c $336 Od 380 O 14.00
Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet (S in millions) Current assets S 42, 526 Current liabilities $ 29,753 Long term assets 46,836 Long-term debt 27,754 Other liabilities 14,321 Equity 17,534 Total S 89, 362 Total S 89, 362 Locust has 659 million shares outstanding with a market price of $85 a share. Calculate the company's market value added. Calculate the market-to-book ratio. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capital contributed by shareholders?
The Income statement for Travers & Co. is shown below. The firm currently has 35.0 million shares of common stock outstanding. However, an analyst has looked at the firm's outstanding warrants and options to determine the likelihood of them being exercised. The analyst has determined that the firm's adjusted number of common shares after the expected dilution is 38.5 million. INCOME STATEMENT (Millions of dollars) Total revenues - Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes $ $ Net income $ - Preferred dividends Net income available to common shareholders $ $ Common dividends Addition to retained earnings What is the firm's DPS for 2005? $3.05 Answer the following questions about Travers & Co.'s Income statement. O $3.13 $2.61 O $1.79 O $2.03 What is the basic EPS? $4.35 $4.68 $4.74 $3.20 $3.65 What is the diluted EPS? O $2.91 $4.26 $ 1,450 1,200 50 200 25 175 63 112 O $3.65 O $4.68…
The following is the financial data for RuNutz Corp: Revenues = $125 million; Cost excluding depreciation = $17 million; Depreciation = $13 million; Interest Expense = $1.5 million; Tax rate=21%; Preferred Dividends = $4 million; Common Dividends = $5 million. The company has 7 million common stocks outstanding, and 1 million vested stock options, each with a strike of $4, and the current price of the stock is $12. The company increased its receivables by $10 million and its payables by $5 million this year. a. The EPS for the year is____, and the diluted EPS is______. b. The addition to cash-flow from operations for the year is________.
BK Corporation has a value of operations equal to P2,100, short-term investments of P100, debt of P200, and 100 shares of stock. If BK converts its short-term investments to cash and repurchases P100 of its stock, what is the resulting estimated intrinsic stock price and how many shares remain outstanding?

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