Calculate the transaction value (in $ thousands) of a theoretical company based on the information provided below. Current Share Price $18.00 Shares Outstanding (Thousands) 5,000 Total Debt ($ Thousands) $3,700 Cash ($ Thousands) $2,100 Acquisition Premium 10%

Calculate the transaction value (in $ thousands) of a theoretical company based on the information provided below. Current Share Price $18.00 Shares Outstanding (Thousands) 5,000 Total Debt ($ Thousands) $3,700 Cash ($ Thousands) $2,100 Acquisition Premium 10%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

See similar textbooks

Related questions

Q: Based on the information given below on Harmony Incorporated calculate the following: 1) Net Income;…

A: Earnings per share (EPS) is a financial metric that indicates the amount of a company's net income…

Q: From the following particulars pertaining to Assets and Liabilities of a company calculate and…

A: Current Ratio = Current Asset / Current Liabilities Current Assets = Sundry Debtors + Stock +Cash in…

Q: Compute the following: i) EPS of both the companies ii) Exchange Ratio

A: EPS is the earning per share. It is determined by dividing the company’s net profit by its…

Q: A company balance sheet showed total assets of $60 million, total liabilities (including preferred…

A: Liquidation value per share of common stock means value which will be received after all assets are…

Q: Calculate the Enterprise value using following information: Number of Shares outstanding: 25,000…

A: Given information: Number of shares outstanding 25,000 Book value per share is $18 Price to book…

Q: The extract of statement of financial position for the year ended 30 June 2022 for Pears Ltd and…

A: As per the guidelines we can solve only first three sub parts for you if you need another answers…

Q: pany's total number of shares issued and outstanding is 100,000 If the shares were issued 20% above…

A: Legal capital is par value of equity or preferred stock that cannot be distributed and is not…

Q: The company capital structure consist of debt 380000 @ 4.05%, common stock 220000@ 12.09% and…

A: WACC is the average cost of capital which can be calculated by using this equation WACC =Debttotal…

Q: The following data was taken from the accounting records of Pina Colada Corporation: Total assets…

A: The return on assets is used to evaluate the efficiency of the management in utilizing the assets to…

Q: Assume a company provided the following information: Net income $ 60,000 Number of common shares…

A: Dividend yield ratio = Dividends per share / Market price per share

Q: A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets…

A: Market value of equity = 1,200Number of shares outstanding = 300The current share price is

Q: Outstanding Common shares = 1.05 Millions. Company PE ratio is 13.8 Net income for the year is $…

A: The price-to-earnings ratio (P/E ratio) is a valuation ratio that compares a company's current share…

Q: ABC Corporation presented the following information in its 2021 statement of financial position:…

A: treasury stock is the stock purchased by the company from the open market. treasury stock will…

Q: Assume the following data for Cable Corporation and Multi-Media Incorporated Multi-Media…

A: Return on shareholder's equity (ROE) evaluates a company's profitability concerning towards equity…

Q: Item Henry company…

A: eps and p/e of henry company earnings available for common stock = 225000 no of shares outstanding =…

Q: An entity provided the following shareholders' equity at year-end: Ordinary share capital, P100 par,…

A: GIVEN ÷ Ordinary share capital P7200000 ( 72000×100 each) Retained earnings…

Q: 2. An entity showed the following data: Share capital, par value P10, 25,000 shares issued 250,000…

A: Introduction Journal entry is the modern method of accounting in which all business transactions are…

Q: Problem 1 (Adapted) The shareholders’ equity of Yelan Company showed the following account balances…

A: Share capital is one of the important source of finance for the business. It includes common share…

Q: Beverly Company provides the following information for the year 2020: January 1 December 31 Total…

A: Beginning retained earnings = total assets - total liabilities - share capital - share premium =…

Q: Accounting XYZ Corporation had the following balance sheet information: Total assets: $500,000…

A: BOOK VALUE PER SHAREBook Value Per Share is the Ratio between the Shareholders Equity After…

Q: a company has the following items: share capital-ordinaty: $920,000 treasury shares : $85,000…

A: Total equity = Share capital-ordinaty + retained earning - treasury shares

Q: Brenda Limited has an enterprise value of $10 million, total debt of $4 million and 2 million shares…

A: The value of equity on a per-share basis is based on the overall equity value for the firm as well…

Q: calculate the enterprise value using following information: number of shares outstanding:25000…

A: Enterprise Value is the total value of a company on the basis of total market capitalization, debt,…

Q: The following information are related to Spade Corporation: Sales P 15,000,000 Asset Turnover 3.0 X…

A: The book value of share is a measure of the finances of the company. It shows how much the company…

Q: Es Tri Company provided the following information from a comparative statement of financial…

A: Formula: Number of outstanding shares = Number of shares issued - No. of Treasury shares where,…

Q: . From the following, calculate (a) Debt-Equity Ratio (b) Total Assets to Debt Ratio Equity Share…

A: We know that Debt- Equity ratio = (Outside Debts/ Equity) Here only debenture represents outside…

Q: HAT Company provided the following information for the 2018: Total Assets at December 31 4,500,000…

A: Debt-to-equity ratio = Total liability / Total shareholder's Equity Total Assets to equity = 100%…

Q: Assume the following data for Cable Corporation and Multi-Media Incorporated. Cable Corporation $…

A: The ratio of return on stockholders’ equity reflects the income generated with respect to each…

Q: Assume a company provided the following information: Earnings per share $ 1.20 Number of common…

A: Dividends are the periodic income that the security of the company paying out dividends earns. It is…

Q: Analyse the information given in the table below and answer the questions below: Details Company A…

A: Earnings per share refer to the earnings of the company generated by the company per outstanding…

Q: from the given information calculate EFS and P/E ratio Net Income : 5,00,000 8% prference share…

A: In the given case, the income is given which is after deducting the expenses from the total income .…

Q: Current assets Long-term assets Total $ 42,524 46,832 Current liabilities Long-term debt Other…

A: Main objective of company is to create value for shareholders and for this managers try increase…

Question

Calculate the transaction value (in $ thousands) of a theoretical company based on the information provided below.

Current Share Price	$18.00
Shares Outstanding (Thousands)	5,000
Total Debt ($ Thousands)	$3,700
Cash ($ Thousands)	$2,100
Acquisition Premium	10%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

(a) Calculate current Ratio and Quick Ratio from the followinginformation:Total Assets Rs. 350000Fixed Assets Rs. 175000Investment Rs. 70000Fictitious Assets Rs. 5000Share holders fund Rs. 200000Long term Debts Rs. 100000Inventory Rs. 45000(b) From the following information calculate the stock turnoverratio.Sales Rs. 200000, G.P 25% on cost, Opening Stock was 1/3rd of thevalue of closing stock. Closing stock was 30% of sales
If the common stock of Comdisco pays an annual dividend of $0.28, has a PE ratio of 11, and closed at 25, what are the current earnings per share? a. $7.00 b. $2.27 c. $3.08 d. $1.12
N1. Account
Based on the attached table, which company has the highes annual dividend yield? Company C Company B Company A Stock A B C D Share Price $20 $30 $40 $50 Quarterly Dividend Amount 0.10 0.15 0.50 0.25 Annual EPS $0.50 $3.00 $2.00 $2.50
Assume the following data for Cable Corporation and Multi-Media Incorporated. Multi-Media Incorporated Cable Corporation $ 39,800 352,000 409,000 $ 190,000 2,170,000 966,000 234,000 545,000 175,000 421,000 Net income Sales Total assets Total debt Stockholders' equity a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places. Cable Corporation Multi-Media, Incorporated 2. Which firm has the higher return? Return on Stockholders' Equity % %
Para el año que culmina el 30 de junio de 2018, Northern Air Cooling Corporation tiene: Total assets = $87,631,181 ROA = 11.67 % ROE = 21.19 % Net profit margin = 11.59 % Determina lo siguiente Net income: _____________ Sales: _____________ Debt-to-equity ratio: _____________
Assume Skyler Industries has debt of $4,398,941with a cost of capital of 9% and equity of $5,435,265 with a cost of capital of 6.1%. What is Skyler’s weighted average cost of capital for debt? Round to the nearest hundredth, two decimal places and submit the answer in a percentage.
Expressed as a percentage, what would be a company's current ratio if net fixed assets are Ph1,230,000; current assets, P368,400; current liabilities, Ph120,00 and other liabilities, Ph65,000 a. 307% b. 450% c. 603% d. 860%
Examine the following income statement: Approximately how much does the outstanding debt cost shareholders every year? a. $50 b. $33 c. $88
MVP Company has below ratios for the year 2021: ROA = 10% Current Ratio = 2:1 What is the effect of the following transactions on the above ratios? ( DECREASE, INCREASE, NO EFFECT)
Assuming the following: 1.4mm outstanding shares 2. $40mm of pre-tax Net Income 3. $9mm of Depreciation 4. PE multiple of 16x 5. $1.75 quarterly dividend which is expected to grow by 4.23% 6. Book value of $115mm 7. Outstanding debt Of $150mm 8. After-tax cost of debt of 6% 9. Current share price of $125 10. Tax rate of 25% 11. EBITDA Multiple of 7x. What is the value of equity using the EBITDA multiple methodology? A form of the correct answer would be $53mm.
Total debt to total assets% ratio: ?? Round your answer to the nearest hundredth percent Return on equity% ratio: ?? Round your answer to the nearest hundredth percent Asset turnover ratio: ?? Round your answer to the nearest cent