Sinaloa Appliance, Incorporated, a private firm that manufactures home appliances, has hired you to estimate the company's beta. You have obtained the following equity betas for publicly traded firms that also manufacture home appliances. ($ millions) Firm iRobot Middleby's National Presto Newell Brands Whirlpool Beta Debt Market Value of Equity 0.99 $ 0 $ 3,490 1.94 777 0.19 0 1.14 11,968 1.84 4,545 7,610 904 27,270 14,610 a. Estimate an asset beta for Sinaloa Appliance. Note: Round intermediate calculations and final answer to 3 decimal places. Asset beta

Sinaloa Appliance, Incorporated, a private firm that manufactures home appliances, has hired you to estimate the company's beta. You have obtained the following equity betas for publicly traded firms that also manufacture home appliances. ($ millions) Firm iRobot Middleby's National Presto Newell Brands Whirlpool Beta Debt Market Value of Equity 0.99 $ 0 $ 3,490 1.94 777 0.19 0 1.14 11,968 1.84 4,545 7,610 904 27,270 14,610 a. Estimate an asset beta for Sinaloa Appliance. Note: Round intermediate calculations and final answer to 3 decimal places. Asset beta

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 13PB: You are a consultant working with various companies that are considering incorporating and listing...

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Could you help me figure out the cost of equity and WACC for a company based on the information below? This is for a scenario where Kelvin, who’s just been appointed as the financial manager of MetaGreen, wants to apply his understanding of the cost of capital from his finance course to make sound financial decisions. Here’s the company information: Company Listing and Stock Info: Listed on the stock exchange Common stock market value: $2,080,000 Beta: 2 Market risk premium: 4% Risk-free rate: 3% Cost of Capital Components: Cost of debt: 7% Cost of preferred stock: 8% Tax rate: 34% Preferred Stock Details: 40,000 preferred shares outstanding Market price of preferred stock: $34 per share Bond Info: Bonds' total market value: $560,000 Could you show me how to use CAPM to find the cost of equity and then calculate the weighted average cost of capital (WACC) for the company?
Assume that you have an opportunity to buy the stock of CoolTech, Inc., an IPO being offered for $10.78 per share. Although you are very much interested in owning the company, you are concerned about whether it is fairly priced. To determine the value of the shares, you have decided to apply the free cash flow valuation model to the firm's financial data that you've accumulated from a variety of data sources. The key values you have compiled are summarized in the following table, a. Use the free cash flow valuation model to estimate CoolTech's common stock value per share. b. Judging by your finding in part a and the stock's offering price, should you buy the stock? c. On further analysis, you find that the growth rate in FCF beyond year 4will be 5% rather than 4%. What effect would this finding have on your responses in parts a and b?
An analyst has determined that the appropriate EV/EBITDA for Rainbow Company is 9.6. The analyst has also collected the following forecasted information for Rainbow Company: EBITDA 21,520,490 = Market value of debt = 55,130,410 Cash 1,665,658 = Compute the value of equity for Rainbow Company. (Enter your answer as a number, rounded to the nearest whole number, like this: 1234) Type your answer...
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3. Below is a snapshot of some information about Microsoft Corporation from Yahoo! Finance on 10/16/2019. B) What is the Microsoft stock price and the market cap? C) Based on the information you collected in question (1), what is the total number of shares outstanding for Microsoft? (Hint: Market cap is the short name for “Market capitalization”. It represents the market value of a company’s total outstanding shares. It is equal to the stock price per share* total number of shares outstanding). D)What is Microsoft dividend payment and dividend yield?
Estimate the weighted-average cost of capital for Home Depot (HD), Altria (MO), Caterpillar (CAT), and Intel (INTC). You can estimate the expected stock returns for these companies by using the betas shown on finance.yahoo.com. You can also use Yahoo! Finance to find the relative proportions of equity and debt for each company. Remember, though, to use the mar- ket value of the equity, not its book value. Finding the yield on the debt is a little trickier. One possibility it to log on to the Federal Reserve Bank of St. Louis site at https://fred.stlouisfed .org/ to find the current level of Treasury yields and the yield spreads (i.e., the extra yield for bonds with different ratings). An alternative is to view recent transactions at www.finra.org /industry/trace/corporate-bond-data. Note: As we write this, Moody's provides an A rating for all four companies.
NOTE: based on the info given please solve the question .
Read carefully the following scenarios and answer the questions asked in each scenario after analysis: 1. The following quote on Yahoo! stock appeared on April 11, 2016, on Yahoo! Finance(please see attached picture): If you wanted to buy Yahoo!, what price would you pay per share? How much would you receive per share if you wanted to sell Yahoo!?
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Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2021. Also assume that the firm's equity beta is 1.40, the risk-free rate is 2.75 percent, and the market risk premium is 7 percent. Dividends per share Return on equity Book value per share 2021 value per share Average price multiple Forecasted growth rate $ 2.04 9.50% $ 17.05 Earnings $ 5.00 13.10 13.48% Cash Flow $ 6.60 9.42 11.41% Sales $ 25.65 2.36 7.34% The sustainable growth rate is 5.624 percent, and the required return is 12.55 percent. Use the clean surplus relationship to calculate the share price for Beagle Beauties with the residual income model. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Share price
On a particular date, Microsoft has a stock price of $420.30 and EPS of $11.20.... please answer the financial accounting question
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