Required:Determine the valuation of the company at the end of 2019 using each of the following three methods. Assume earnings and cashflows for the coming 10 years are equal to the earnings and cash flows in 2019; the appropriate free cash flow multiple is 23.4. (Enteryour answers in millions rounded to nearest whole number.)a. Market capitalization.b. Enterprise value.c. Free cash flow multiple.a Market capitalizationb Enterprise valueeFree cash flow multiplemilionmillionmilion Consider the following balance sheet and income statement for Mmm Good Foods Incorporated (the company that operates TastyFried Chicken and Pizza Party), In condensed form, including some information from the cash flow statement: (amounts are in millions)Mem GoodFoodsIncorporated2019S 70637238Balance SheetCash and short-term InvestmentsAccounts receivableInventoryOther current assetsLong-lived assets3824,008$ 5,506$1,379total assetsCurrent liabilitiesTotal liabilitiesNoncontrolling interest11,138Shareholders equityTotal liabllities and equity(5,632)$ 5,506Incone StatenentSales$6, 3863,500$2,070$1,627309Cost of salesGross marginEarnings before interest and taxesInterestTaxes326623Income fron discontinued operationsNet income$1,615Share priceEarnings per shareliumber of outstanding shares (millions)Cash FlowsCash flow from operatilonsCapital expendituresDividends$654.31355.2$1,206424754

Market capitalization=Share Price×Number of outstanding Share Enterprise value=Market Value of…

Required: Determine the valuation of the company at the end of 2019 using each of the following three methods. Assume earnings and cash flows for the coming 10 years are equal to the earnings and cash flows in 2019: the appropriate free cash flow multiple is 23.4. (Enter your answers in millions rounded to nearest whole number.) a. Market capitalization. b. Enterprise value. c. Free cash flow multiple. milon milon Market capitalization DEnterprise value CFree cash fiow multple milon

Required: Determine the valuation of the company at the end of 2019 using each of the following three methods. Assume earnings and cash flows for the coming 10 years are equal to the earnings and cash flows in 2019: the appropriate free cash flow multiple is 23.4. (Enter your answers in millions rounded to nearest whole number.) a. Market capitalization. b. Enterprise value. c. Free cash flow multiple. milon milon Market capitalization DEnterprise value CFree cash fiow multple milon

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Required:
Determine the valuation of the company at the end of 2019 using each of the following three methods. Assume earnings and cash
flows for the coming 10 years are equal to the earnings and cash flows in 2019; the appropriate free cash flow multiple is 23.4. (Enter
your answers in millions rounded to nearest whole number.)
a. Market capitalization.
b. Enterprise value.
c. Free cash flow multiple.
a Market capitalization
b Enterprise value
eFree cash flow multiple
milion
million
milion

Consider the following balance sheet and income statement for Mmm Good Foods Incorporated (the company that operates Tasty
Fried Chicken and Pizza Party), In condensed form, including some information from the cash flow statement: (amounts are in millions)
Mem Good
Foods
Incorporated
2019
S 706
372
38
Balance Sheet
Cash and short-term Investments
Accounts receivable
Inventory
Other current assets
Long-lived assets
382
4,008
$ 5,506
$1,379
total assets
Current liabilities
Total liabilities
Noncontrolling interest
11,138
Shareholders equity
Total liabllities and equity
(5,632)
$ 5,506
Incone Statenent
Sales
$6, 386
3,500
$2,070
$1,627
309
Cost of sales
Gross margin
Earnings before interest and taxes
Interest
Taxes
326
623
Income fron discontinued operations
Net income
$1,615
Share price
Earnings per share
liumber of outstanding shares (millions)
Cash Flows
Cash flow from operatilons
Capital expenditures
Dividends
$65
4.31
355.2
$1,206
424
754

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