Please correct answer and don't used hand raiting Fact pattern: $ in millions, EBITDA at Close $27, Exit Multiple 9.5x, Investment Hold Period 5years, Liquidation Preference 1.0x, preferred annual PIK Dividend 10%, Target Balance SheetItems Cash 10, Revolver 6.5, Senior Debt 85, Preferred Equity (excl, Dividend). Based on thisfact pattern what is the Equity Available to Common? $0M, $50M, $80.5M, $94.5M, or $175M?

To calculate the Equity Available to Common based on the given fact pattern, we need to work through…

Answered: Fact pattern: $ in millions, EBITDA at…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
Consider the following data....accounting questions
Assume that Firm A is an all-equity firm with total assets of $5,000 and the following distribution of EBIT for the coming year: Firm A Unlevered Probability EBIT Interest EBT Taxes (40%) Net Income BEP ROA ROE Bad O 3.487% O 2.653 % O 3.098% O 3.774% O 2.800% 30.00% $500.00 $0.00 $500.00 -$200.00 $300.00 10.00% 6.00% 6.00% Economy Average 50,00% $700.00 $0.00 $700.00 -$280.00 $420.00 14.00% 8.40% 8,40% Good 20.00% $900.00 $0.00 $900.00 -$360.00 $540.00 18.00% 10.80% 10.80% Now assume that the firm plans to issue $2,000 of debt, at an interest rate of 6.4 percent, and use the proceeds to repurchase equity (you may ignore potential impacts on price and assume that the firm will then have $3,000 of equity). Given this information, determine the standard deviation of the new ROE distribution.
Assume that Firm A is an all-equity firm with total assets of $5,000 and the following distribution of EBIT for the coming year: Fem A Unlevered Probability EBIT Interest EBT Taxes (40%) Net Income BEP ROA ROE O2.653% O 3.487% 2.800% O 3.098% Bad 3.774% 10.00% $500.00 $0.00 $500.00 -$200.00 $300.00 10.00% 6.00% 6.00% Economy Average 40.00% $700.00 $0.00 $700.00 -$280.00 $420.00 14.00% 8.40% 8.40% Now assume that the firm plans to issue $2,000 of debt, at an interest rate of 6.4 percent, and use the proceeds to repurchase equity (you may ignore potential impacts on price and assume that the firm will then have $3.000 of equity). Given this information, determine the standard deviation of the new ROE distribution. Good 50.00% $900.00 $0.00 $900.00 -$360.00 $540.00 18.00% 10.80% 10.80%
20Y8 20Υ7 20Υ6 20Y5 20Υ4 Net income $1,120,400 $965,900 $811,700 $693,800 $588,000 Interest expense 380,900 347,700 300,300 229,000 182,300 Income tax expense 358,528 270,452 227,276 180,388 141,120 Total assets (ending balance) 6,308,280 6,633,962 4,788,646 4,965,740 3,765,686 Total stockholders' equity (ending balance) 2,021,243 2,424,789 1,550,109 1,918,695 1,151,217 Average total assets 6,471,121 5,711,304 4,877,193 4,138,117 3,517,352 Average stockholders' equity 2,223,016 1,987,449 1,734,402 1,534,956 1,342,466 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Y4-20Y8 Return on total assets 22.9% 47.2% Return on stockholders' equity 4.6 Times interest earned 2.1 Ratio of liabilities to stockholders' equity Required: 1. Determine the following for the years 20Y4 through 20Y8. Round to one decimal place: a. Return on total…
Of the investments listed in the table below, which will give you the highest holding period return? Investment Original cost Selling price Distributions received CD $500.00 $540.00 $10.00 Common stock $2300.00 $3400.00 $20.00 Bond $1,040.00 $980.00 $80.00 Preferred stock $2000.00 $2100.00 $200.00
Stock price Shares outstanding (millions) Mkt value Debt (millions) Capitalization (book value) Debt Equity Beta Target D/E Cost of debt Market Info Risk-free rate Comparable Company 10 1,000 10,000 20.00% 80.00% 1.40 n/a 6.50% 4.00% Market Risk Premium 5.00% Company A n/a n/a n/a 25.00% 75.00% n/a 0.80 5.00% Required: Use the relevant Comparable Company and Company A to calculate the WACC for Company A Assume the tax rate for both companies is 30%.
The following information is about Green Tea Ltd. Year Net income ($’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%.
I need this question financial accounting
INPUTS (In millions) Free cash flow Marketable Securities Notes payable (short-term debt) Long-term bonds Preferred stock WACC Number of shares of stock Free cash flow Long-term constant growth in FCF Horizon value PV of horizon value 3 Value of operations 4 Plus value of narketable securities 5 Total value of company Current 0 a. Calculate the estimated horizon value (i.e., the value of operations at the end of the forecast period immediately after the Year-4 free cash flow). Assume FCFs grow constantly after year 3. 3 PV of FCF 9 Value of operations (PV of FCF + - HV) 0 1 c. Calculate the estimated Year-0 price per share of common equity. 2 6 Less value of debt 7 Less value of preferred stock 8 $40 $100 $300 $50 9.00% 40 Estimated value of common equity 9 Divided by number of shares 0 Price per share 1 Current 0 1 -$20.0 Year 1 -$20.0 Projected 2 $20.0 b. Calculate the present value of the horizon value, the present value of the free cash flows, and the estimated 5 Year-0 value of…
D1.
The following information is about Green Tea Ltd. Beginning Net income book value of equity ($'000 000) Year ($'000 000) 32 42 28 39 3 44 47 Required: Calculate Equity value using discounted abnormal earnings valuation method. The cost of capital is 10%.

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