1. IG International believes that Axalta is a takeover target. Use the Supernormal then Constant Growth Model...
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1. IG International believes that Axalta is a takeover target. Use the Supernormal then Constant Growth Model and the information below to find Axalta’s value.
Beta | 1.10 |
Sales, Year t | $4,482,200 |
Supernormal g | 0.05 |
Constant g | 0.02 |
Operating income | 488,200 |
Earnings before taxes | 330,000 |
Taxes | 77,400 |
Capital expenditures | 112,500 |
2. Mondelez is on several takeover target lists. Use the Supernormal then Zero Growth Model and the information below to find Mondelez’ value.
Beta | 1.00 |
Sales Year t | 25,896 |
Supernormal g | 0.08 |
Operating income | 3,506.00 |
Tax rate | 0.30 |
Capex | 1,014.00 |
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
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