The purpose of the valuation using comparable. Introduction: The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Question

Want to see the full answer?

Answer 1

Question

Chapter 19.1, Problem 1CC

Summary Introduction

To discuss: The purpose of the valuation using comparable.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

no solve with assumption data Please don't solve i mistakely posted blurr image. i will give unhelpful if answer is incorrect..

Crenshaw, Incorporated, is considering the purchase of a $367,000 computer with an economic life of five years. The computer will be fully depreciated over five years using the straight-line method. The market value of the computer will be $67,000 in five years. The computer will replace five office employees whose combined annual salaries are $112,000. The machine will also immediately lower the firm's required net working capital by $87,000. This amount of net working capital will need to be replaced once the machine is sold. The corporate tax rate is 22 percent. The appropriate discount rate is 15 percent. Calculate the NPV of this project. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. NPV Answer is complete but not entirely correct. S 103,141.80

Your firm is contemplating the purchase of a new $610,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $66,000 at the end of that time. You will save $240,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $81,000 (this is a one-time reduction). If the tax rate is 21 percent, what is the IRR for this project? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. IRR %

Answer 2

Question

Chapter 19.1, Problem 1CC

Summary Introduction

To discuss: The purpose of the valuation using comparable.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 19.1, Problem 1CC

Summary Introduction

To discuss: The purpose of the valuation using comparable.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 19.1, Problem 1CC

Summary Introduction

To discuss: The purpose of the valuation using comparable.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 19.1, Problem 1CC

Summary Introduction

To discuss: The purpose of the valuation using comparable.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Answer 6

Chapter 19.1, Problem 1CC

Summary Introduction

To discuss: The purpose of the valuation using comparable.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Answer 7

Chapter 19.1, Problem 1CC

Summary Introduction

To discuss: The purpose of the valuation using comparable.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 19.1 - Prob. 1CC Ch. 19.1 - Prob. 2CC Ch. 19.2 - Prob. 1CC Ch. 19.2 - Prob. 2CC Ch. 19.3 - What is a pro forma income statement?Ch. 19.3 - Prob. 2CC Ch. 19.4 - Prob. 1CC Ch. 19.4 - Prob. 2CC Ch. 19.5 - Prob. 1CC Ch. 19.5 - Prob. 2CC

The purpose of the valuation using comparable. Introduction: The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Solution Summary: The author explains the purpose of valuation using comparable, which is to identify or compare the multiples with that of similar peer companies.

Videos

To discuss: The purpose of the valuation using comparable.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Want to see the full answer?

Chapter 19 Solutions

The purpose of the valuation using comparable. Introduction: The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Solution Summary: The author explains the purpose of valuation using comparable, which is to identify or compare the multiples with that of similar peer companies.

Videos

To discuss: The purpose of the valuation using comparable. Introduction: The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Want to see the full answer?

Chapter 19 Solutions

To discuss: The purpose of the valuation using comparable.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.