Question: need help to solve the following. Kindly provide detailed calculation so I can follow the steps. We know the following about Mikhasev. Total assets are
need help to solve the following. Kindly provide detailed calculation so I can follow the steps.
We know the following about Mikhasev. Total assets are $100m, D is $30m, E is $70m, cash is $10m and the # of shares is 1m. We estimate that the market value of equity is 2 times the book value of it. Finally, a fire sale of the firm would bring 60% of the value to the co.
Compute the following:
1) book value,
2) liquidation value,
3) replacement value
4) enterprise value per share
Thank you,
Emeritus
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