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The following table provides summary information for Max Corp. and its competitors Bernhard, Inc. and Eva Co. Use the information to compute the net income multiple for Bernhard and Eva. In addition, using Bernhard and Eva as comparables, compute Max’s equity intrinsic value per share.   Max Bernhard Eva Company assumed value   $667,964 $948,663 Equity assumed value   408,990 805,408 NOPAT $140,584 65,456 102,841 Net income 138,024 60,304 97,853 Net nonoperating obligations 215,648 258,974 143,255 Common shares outstanding 13,289 15,584 5,745

The following table provides summary information for Max Corp. and its competitors Bernhard, Inc. and Eva Co. Use the information to compute the net income multiple for Bernhard and Eva. In addition, using Bernhard and Eva as comparables, compute Max’s equity intrinsic value per share.   Max Bernhard Eva Company assumed value   $667,964 $948,663 Equity assumed value   408,990 805,408 NOPAT $140,584 65,456 102,841 Net income 138,024 60,304 97,853 Net nonoperating obligations 215,648 258,974 143,255 Common shares outstanding 13,289 15,584 5,745

Essentials Of Investments
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
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  1. The following table provides summary information for Max Corp. and its competitors Bernhard, Inc. and Eva Co. Use the information to compute the net income multiple for Bernhard and Eva. In addition, using Bernhard and Eva as comparables, compute Max’s equity intrinsic value per share.

 

Max

Bernhard

Eva

Company assumed value

 

$667,964

$948,663

Equity assumed value

 

408,990

805,408

NOPAT

$140,584

65,456

102,841

Net income

138,024

60,304

97,853

Net nonoperating obligations

215,648

258,974

143,255

Common shares outstanding

13,289

15,584

5,745

 

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