You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $4 billion, price/earnings ratio = 20.5, common shares outstanding = 60 million, andmarket/book ratio = 1.7. The firm's market value of total debt is $8 billion; the firm has cash and equivalents totaling $320 million; and the firm's EBITDA equals $1 billion.What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.

The share price, sometimes referred to as the stock price, is the amount needed to buy one share of…

Answered: You are given the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

The value of firm is equal to value of debt plus value of equity. Assume the firm has 4 million shares outstanding currently selling at $25 per share, and it decides to issue 50 million in debt to repurchase 2 million shares, how would this affect the value before/ after.
Jensen Inc. has total equity of $70 billion and 670 million shares outstanding. Its ROE is 18.32%. The dividend payout ratio is 11.3%. Calculate the company's dividends per share (round to the nearest penny). The company's dividends per share is $ (Round to the nearest cent.)
MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The preferred stock weight for the WACC calculation is __ % ? (Round to two decimal places.)
You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $3200 million in assets with $30.00 million in debt and $200 million in equity. LotsofEquity, Inc. finances its $32.00 million in assets with $2.00 million in debt and $30.00 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) Debt ratio LotsofDebt, Inc. LotsofEquity, Inc. Calculate the equity multiplier. (Round your answers to 2 declmal places.) Equity multiplier LotsofDebt, Inc. times LotsofEquity. Inc, times Calculate the debt-to-equity. (Round your answers to 2 decimal places.) Debt-to-equity LotsofDebt, Inc. times LotsofEquity. Inc. times pe here to search W 59°F Mostly cloudy DELL
You are given the following information: Book value of stockholders' equity = $5 million; price/earnings ratio = 10; shares outstanding = 100,000; and the market/book ratio = .5. Calculate the market price of %3D a share of the company's stock. O $37.50 O $25.00 O $50.00 O $75.00 O $16.67
On the basis of this information, calculate as many liquidity, activity, leverage, profitzit and common stock measures as you can. (Note: Assume the current market price of the common stock is $75 per share.
MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The common equity weight for the WACC calculation is __ % ? (Round to two decimal places.)
A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has 135 million shares of preferred stock and 390 million shares of common stock. The preferred stock is guaranteed a dividend of $1.30 per year and costs $32 per share. The common stock costs $29 per share. What is the dividend yield for the common stock? Enter your response as a percent and do not include the percent sign. Round to 1 decimal place.
Suppose Beta Industries and Delta Technology have identical assets that generate identical cash flows. Beta Industries is an all-equity firm, with 13 million shares outstanding that trade for a price of $19.00 per share. Delta Technology has 23 million shares outstanding, as well as debt of $74.10 million. According to MM Proposition I, what is the stock price for Delta Technology? (Round to the nearestcent.) Suppose Delta Technology stock currently trades for $11.25 per share. What arbitrage opportunity is available? What assumptions are necessary to exploit this opportunity? (Round to the nearestcent.)
assume an analyst has valued a stock at $59.75 per share. What was the NPV of the firm if there are $ 3,500,000 shares outstanding and athe market value of the debt is $24,000,000
Book Co. has 1.3 million shares of common equity with a par (book) value of $1.30, retained earnings of $31.6 million, and its shares have a market value of $50.11 per share. It also has debt with a par value of $20.8 million that is trading at 101% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC? a. What is the market value of its equity? The market value of the equity is $ __ million ? (Round to two decimal places.)
Assume the following information about a firm's capital components: Debt= $20,000 at 8% preferred stock = $20,000 at 11% Common stock = $60,000 at 14% The firm's WACC is:

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