Exhibit 14.12 presents market and profit data for three companies. Using this data, compute enterprise-value-to-EBITDA and enterprise-valueto- EBITA for Companies 1 and 2. Is the net difference between Company 1 and Company 2 the same for both ratios? If not, why might this be?
Answer to relevant QuestionsExhibit 14.12 presents market and profit data for three companies. If Company 3 has nonoperating assets valued at $50 million, what are the company's appropriate enterprise-value-to-EBITDA and enterprise-valueto EBITA ...Explain how long-term price-to-earnings ratios in the U.S. stock market of around 15 times are consistent with long-term expected stock returns of around 6 to 7 percent a year in real terms. Fundamentals explain less of the variation in TRS than in market-valueto- book-value or market-value-to-earnings ratios (as measured by the R2 shown in Exhibits 15.7 and 15.10). This holds true even when TRS is measured over ...In the past, a fast-growing mobile telecommunications company has always capitalized its customer acquisition costs. For the next few years, management expects growth in its customer base to slow significantly, probably ...Why do executives spend so much time and effort on communicating with noise traders if intrinsic investors ultimately drive a company’s share price?
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