The following table shows Fortune 500's rankings of America's 10 largest corporations for 2010. Next to each corporation is its market capitalization (in billions of dollars as of March 26, 2010) and its total return to investors for the year 2009. (Largest corporations) Company Walmart Exxon Mobil Chevron General Electric Bank of America ConocoPhillips AT&T Ford Motor JP Morgan Chase Hewlett-Packard Mkt. Cap. (in $ billions) $209 314 149 196 180 78 155 47 188 125 Total Return -2.7% -12.6 8.1 -0.4 7.3 2.9 4.8 336.7 19.9 43.1 SOURCE: money.cnn.com, May 3, 2010. Calculate the mean value of market capitalization. Report the answer

The following table shows Fortune 500's rankings of America's 10 largest corporations for 2010. Next to each corporation is its market capitalization (in billions of dollars as of March 26, 2010) and its total return to investors for the year 2009. (Largest corporations) Company Walmart Exxon Mobil Chevron General Electric Bank of America ConocoPhillips AT&T Ford Motor JP Morgan Chase Hewlett-Packard Mkt. Cap. (in $ billions) $209 314 149 196 180 78 155 47 188 125 Total Return -2.7% -12.6 8.1 -0.4 7.3 2.9 4.8 336.7 19.9 43.1 SOURCE: money.cnn.com, May 3, 2010. Calculate the mean value of market capitalization. Report the answer

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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Suppose that in April 2019, Nike Inc. had sales of $36,367 million, EBITDA of $5,229 million, excess cash of $5,238 million, $3,804 million of debt, and 1,583.2 million shares outstanding. a. Using the average enterprise value to sales multiple in 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 sales multiples in the table above? c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Average Maximum Minimum P 23.99 +81% - 45% Print Price Book 7.46 + 193% - 83% Done Enterprise Value Sales 2.17 + 96% - 80% Enterprise Value EBITDA 19.98 + 73% - 81% X
Estimating Share Value Using the DCF ModelAssume following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 29, 2011. Reported Horizon Period (In millions) 2011 2012 2013 2014 2015 Terminal Period Sales $ 3,750 $ 4,500 $ 5,400 $ 6,480 $ 7,776 $ 7,853 NOPAT 464 539 654 794 982 960 NOA 1,320 1,602 1,933 2,332 2,791 2,802 Answer the following requirements assuming a discount rate (WACC) of 13.3%, a terminal period growth rate of 1%, common shares outstanding of 86.2 million, and net nonoperating obligations (NNO) of $(261) million (negative NNO reflects net nonoperating assets such as investments rather than net obligations).(a) Estimate the value of a share of Abercrombie & Fitch common stock using the discounted cash flow (DCF) model as of January 29, 2011. Rounding instructions: Round answers to the nearest whole number unless noted otherwise. Use your rounded answers for…
What is the net asset value of an investment company with $9,900,000 in assets, $650,000 in current liabilities, and 1,110,000 shares outstanding? Round your answer to the nearest cent. $ per share
Suppose a firm has a retention ratio of 65 percent and net income of $9.9 million. How much does it pay out in dividends? (Enter your answer in dollars not in millions.)
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As of the end of 2020, Microsoft had an annual net income of $51.3 Billion and total assets of $301.3 Billion. Microsoft's total book value of equity as of the end of 2020 was $118.3 Billon. Finally, Microsoft currently has 7.56 billion shares outstanding, and is priced at $243 a share. What is Microsoft's leverage, also known as its equity mulitplier (EM) (remember to use market value of equity)? 7.56 5.42 6.10 8.11
In early 2015, Ford Motor (F) had a book value of equity of $24.3 billion, 4.1 billion shares outstanding, and a market price of $15.78 per share. Ford also had cash of $21.6 billion, and total debt of $118.3 billion. Three years later, in early 2018, Ford had a book value of equity of $34.7 billion, 10.7 billion shares outstanding with a market price of $10.53 per share, cash of $26.1 billion, and total debt of $154.4 billion. Over this period, what was the change in Ford's a. market capitalization? b. market-to-book ratio? c. enterprise value? a. Over the 3-year period, what was the change in Ford's market capitalization? The change in Ford's market capitalization was $ billion. (Round to two decimal places.) b. Over the 3-year period, what was the change in Ford's market-to-book ratio? The change in Ford's market-to-book ratio was (Round to two decimal places.) c. Over the 3-year period, what was the change in Ford's enterprise value? The change in Ford's enterprise value was $…
Home Depot entered fiscal 2017 with a total capitalization of $21,904 million. In 2017, debt investors received interest income of $877 million. Net income to shareholders was $8,654 million. (Assume a tax rate of 21%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
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