QUESTION 5You are performing a valuation of Los Angeles Studios. You have already calculated the enterprise value (of operations) to be $700,000.Other assumptions as of the 2020 valuation date:- Value of current and long-term portion of interest-bearing debt: $ 200,000$30,000- Excess non-operating cash$- Value of preferred stock40,000- Value of minority interest$10,00050,000- Common shares outstanding17- Market value per share- Stock options outstanding:4,5003740%10%11%- Weighted average exercise price on above options- Tax rate- WACCUnlevered cost of capitalWhat is the equity value per share?9.6021.288.8115.7611.86$$

In the parent's financial statements, the revenues, expenses, profits, and cash flows of the…

You are performing a valuation of Los Angeles Studios. You have already calculated the enterprise value (of operations) to be $700,000. Other assumptions as of the 2020 valuation date: - Value of current and long-term portion of interest-bearing debt: $ $ - Excess non-operating cash - Value of preferred stock - Value of minority interest - Common shares outstanding - Market value per share - Stock options outstanding: - Weighted average exercise price on above options Tax rate - WACC - Unlevered cost of capital What is the equity value per share? 9.60 O 21.28 O 8.81 O 15.76 11.86 $ $ $ $ 200,000 30,000 40,000 10,000 50,000 17 4,500 37 40% 10% 11%

You are performing a valuation of Los Angeles Studios. You have already calculated the enterprise value (of operations) to be $700,000. Other assumptions as of the 2020 valuation date: - Value of current and long-term portion of interest-bearing debt: $ $ - Excess non-operating cash - Value of preferred stock - Value of minority interest - Common shares outstanding - Market value per share - Stock options outstanding: - Weighted average exercise price on above options Tax rate - WACC - Unlevered cost of capital What is the equity value per share? 9.60 O 21.28 O 8.81 O 15.76 11.86 $ $ $ $ 200,000 30,000 40,000 10,000 50,000 17 4,500 37 40% 10% 11%

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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You need to estimate the value of Laputa Aviation. You have the following forecasts (in millions of dollars) of its profits and of its future investments in new plant and working capital: Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation Pretax profit Tax at 30% Investment Answer is complete but not entirely correct. a. Total value b. Laputa's equity $ 70 30 $ 40 12 9 428 257 X Year 2 $90 40 50 15 12 3 $105 From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed 60% by equity and 40 % by debt. Its cost of equity is 11%, its debt yields 7%, and it pays corporate tax at 30%. 45 60 a. Estimate the company's total value.. Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount. b. What is the value of Laputa's equity? Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount.…
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