am. 134. Suppose that in July 2022, Nike Inc. had EBITDA of $6,673 million, excess cash of $13,039 million, $12,672 million of debt, and 1,454.3 million shares outstanding.a. Using the average enterprise value to EBITDA multiple from the table here, , estimate Nikeshare price.b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?a. Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price.Nike's share price for this case will be $(Round to the nearest cent.)b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table?The highest price will be $The lowest price will be $(Round to the nearest cent.)(Round to the nearest cent.)Question Viewer

Part 2: Explanation:Step 1: Calculate the enterprise value using the EBITDA and the average…

Answered: Suppose that in July 2022, Nike Inc.…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter12: Valuation: Cash-flow Based Approaches

Section: Chapter Questions

Problem 1FIC

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Suppose that in July 2022, Nike Inc. had EBITDA of $6,561 million, excess cash of $12,944 million, $12,541 million of debt, and 1,473.2 million shares outstanding. a. Using the average enterprise value to EBITDA multiple from the table here,, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? a. Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price. Nike's share price for this case will be $ 52.78. (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table? The highest price will be $106.27. (Round to the nearest cent.) Data table TABLE 10.1 Stock Prices and Multiples for the Footwear Industry (excluding Nike), July 2022 Name Nike, Inc. Adidas AG Under Armour Puma AG Skechers U.S.A. Wolverine World Wide Steven Madden, Ltd. Rocky Brands,…
Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.76 and a book value of equity of $12.93 per share. Use the multiples approach to estimate KCP's value based on the comparable firms given in the following table: a. Using the average P/E multiple from the table above, estimate KCP's share price. b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? c. Using the average price to book value multiple in the table above, estimate KCP's share price. d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above? a. Using the average P/E multiple from the table above, estimate KCP's share price. KCP's share price for this case will be $ (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above? The highest price will be $ (Round to the nearest cent.) The lowest price will…
The following information was available for the year ended December 31, 2022: Dividends per share Earnings per share 1.35 3.00 28.20 Market price per share at year-end Required: a. Calculate the price/earnings ratio for 2022. Note: Round your answer to 2 decimal places. b. Calculate the dividend payout ratio for 2022. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). c. Calculate the dividend yield for 2022. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). a. Price/Earning ratio b. Dividend payout ratio c. Dividend yield % Ji di %
The following information was available for the year ended December 31, 2022 Dividende per share Earnings per share Market price per share at year and 1.35 Required: a. Calculate the price/earrings ratio for 2022. Note: Round your answer to 2 decimal places. b. Calculate the dividend payout ratio for 2022 Note: Round your percentage answer to 2 decimal places (La, 9.1234 should be entered as c. Calculate the dividend yield for 2022. Note: Round your percentage answer to 2 decimal places (.a., 0.1234 should be entered as 12.34) Price/Eaming ratio b. Dividend payout ratio c. Dividend yield
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Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.67 and a book value of equity of $8.83 per share, a price to book ratio of 2.84 and P/E ratio 15.01. Estimate KCP’s share price based on PE ratio. Estimate KCP’s share price based on price to book ratio.
A company has a reported net income of RM12 million and 60million shares outstanding.a) Estimate the stock’s market price if the price earning (P/E)ratio is 14.0b) What is the company’s value by market capitalization?
The discounted cash flow model and the corporate valuation model are the most widely used valuation techniques. Often these valuations are accompanied by market multiple analysis, which is based on the fundamental concept that sinar assets should have simlar values. Carlson Co, is a privately owned firm with few investors. Investors forecast their eamings per share (EPS) to reach $3 this coming year The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 11. The estimated intrinsic value of Carlson Co.'s stock will be Market multiple analysis is also used to calculate the value of a company, which is further used to calculate the intrinsic vakre per share of the fim Suppose you have the information given in the following table for Company X. EBITDA Total value of equity Total firm value per share. Year 1 Year 2 $10,680 $12,375 $121,500 $112,500 $182,250 $202,500
: let's assume Company XYZ has the following characteristics: Shares Outstanding: 1,000,000Current Share Price: $5Total Debt: $1,000,000Total Cash: $500,000 Based on the formula above, we can calculate Company XYZ's enterprise value is?
Data table Income Statement-partial: Net Income Balance Sheet-partial: Total Assets Paid-In Capital: Preferred Stock-2%, $5 Par Value; 85,000 shares authorized, 5,000 shares issued and outstanding Common Stock-$3 Par Value; 85,000 shares authorized; 55,000 shares issued and outstanding Paid-In Capital in Excess of Par-Common Retained Earnings Total Stockholders' Equity Print $ $ $ $ Done 2024 22,500 $ 260,000 $ Dec. 31, 2024 Dec. 31, 2023 25,000 $ 165,000 2023 5,000 52,000 247,000 $ 25,000 265,000 25,000 165,000 5,000 30,000 225,000
Using the average multiples for P/E, P/B and P/S, which company will you buy? Show computations to support your decision.
Question:- based on this figure: • Analyze the relationship between share price and D/E ratio • analyze the relationship between share price and sales

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