Need help with this question Nova Components is a manufacturer of computer parts. Thecompany recently reported earnings of $2,417,762. In addition,Nova Components has 402,500 shares issued and outstanding.The company has a PE ratio of 24.6. Nova Components is part ofthe computer parts industry which has an industry PE ratio of25.6.Using industry information, estimate the intrinsic value of NovaComponents' equity per share.A. $64.08B. $153.78C. $128.15D. $5.01

To estimate the intrinsic value of Nova Components' equity per share using the industry PE ratio,…

Answered: Nova Components is a manufacturer of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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Cleanex Ltd is a listed company that provides professional cleaning services. It has 50 million shares outstanding and a current share price of $16.00. Its book value of equity is $400 million and its earnings per share (EPS) are $1.00. Use this information to help answer the questions that follow. (a) Cleanex's market-to-book ratio is Note: Please provide your answer with two decimal points in the format of xx.xx (for example, if the answer is 1.234, type in 1.23). (b) The table below displays information relating to other firms in the cleaning industry. Ticker Earnings per Price per Share Share $52 Company WipeAway Ltd Spotless Ltd Clear Ltd WashOff Ltd RinseDown Ltd WPA SPT CLR WSO RSD $41 $63 $38 $3.50 $2.50 $4.30 $4.80 $3.80 You want to use this information to perform a relative valuation of Cleanex's shares. Based upon the average P/E ratio for its industry, Cleanex's implied equity value per share is $ Note: Please provide your answer with two decimal points in the format of…
Foraker Products is a manufacturer and distributor of numerous food products. The company has a book value of $20.68 per share. Foraker Products is part of the food processing industry which has an industry PB ratio of 2.15.Using industry information, estimate the intrinsic value of Foraker Products' equity per share?
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Gulf Controls, Inc., has a net profit margin of 10 percent and earnings after taxes of $600,000. Its current balance sheet follows: a. Calculate Gulf’s return on stockholders’ equity. b. The industry average ratios are as follows: Compare Gulf Controls with the average firm in the industry. What is the source of the major differences between the Gulf and the industry average ratios?
What is firm's price earnings ratio?
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What is the price sales ratio?
FFDP Corporation has yearly sales of $29.9 million and costs of $15.7 million. The company’s balance sheet shows debt of $55.9 million and cash of $39.9 million. There are 1,960,000 shares outstanding and the industry EV/EBITDA multiple is 9.4. a. What is the company’s enterprise value? b. What is the stock price per share?
Ames, Inc., has a current stock price of $58. For the past year, the company had a net income of $8,400,000, total equity of $25,300,000, sales of $52,800,000, and 4.6 million shares of stock outstanding. a. What are earnings per share (EPS)? b. What is the Price-earnings ratio? c. What is the Price sales ratio? d. What is Book value per share?
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