The company in the previous question, Dodd Corporation, has 100,000shares of common stock owned by its founder. Dodd owes $1,300,000to its bank. Dodd has 11,400 customers. If the average ratio of totalentity value to customers is $500 for a group of comparable publiccompanies, what is Dodd’s estimated total entity value? ($5,700,000)What is its estimated stock value on a per share basis? ($44.00)
The company in the previous question, Dodd Corporation, has 100,000shares of common stock owned by its founder. Dodd owes $1,300,000to its bank. Dodd has 11,400 customers. If the average ratio of totalentity value to customers is $500 for a group of comparable publiccompanies, what is Dodd’s estimated total entity value? ($5,700,000)What is its estimated stock value on a per share basis? ($44.00)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The company in the previous question, Dodd Corporation, has 100,000
shares of common stock owned by its founder. Dodd owes $1,300,000
to its bank. Dodd has 11,400 customers. If the average ratio of total
entity value to customers is $500 for a group of comparable public
companies, what is Dodd’s estimated total entity value? ($5,700,000)
What is its estimated stock value on a per share basis? ($44.00)
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