ABC's income statement from the fiscal year that ended this past December is:Revenue $995Cost of goods...
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ABC's income statement from the fiscal year that ended this past December is:Revenue $995Cost of goods sold 652Gross profit $343Selling, general, & administrative expenses 135Operating profit (EBIT) $208Interest expense 48Earnings before taxes $160Taxes 64Net income $ 96All dollar values are in millions. Depreciation and amortization expenses last year were $42 million, and the company has $533 million of debt outstanding.You are an analyst at a private equity firm that buys private companies, improves their operating performance, and sells them for a profit. Your boss has asked you to estimate the fair market value of the ABC Company. DEF's is a public company with business operations that are virtually identical to those at ABC. The most recent income statement for DEF is as follows:Revenue $1,764Cost of goods sold 1,168Gross profit $ 596Selling, general, & administrative expenses 2110perating profit (EBIT) $ 385Interest expense 12Earnings before taxes $ 373Taxes 147Net income $ 226All dollar values are in millions. DEF's had depreciation and amortization expenses of $71 million last year and 200 million shares and $600 million of debt outstanding as of the end of the year. Its stock is currently trading at $12.25 per share.Using the P/E multiple, what is the per share value of ABC's stock? What is the total value of ABC Company? Show your computations. ABC's income statement from the fiscal year that ended this past December is:Revenue $995Cost of goods sold 652Gross profit $343Selling, general, & administrative expenses 135Operating profit (EBIT) $208Interest expense 48Earnings before taxes $160Taxes 64Net income $ 96All dollar values are in millions. Depreciation and amortization expenses last year were $42 million, and the company has $533 million of debt outstanding.You are an analyst at a private equity firm that buys private companies, improves their operating performance, and sells them for a profit. Your boss has asked you to estimate the fair market value of the ABC Company. DEF's is a public company with business operations that are virtually identical to those at ABC. The most recent income statement for DEF is as follows:Revenue $1,764Cost of goods sold 1,168Gross profit $ 596Selling, general, & administrative expenses 2110perating profit (EBIT) $ 385Interest expense 12Earnings before taxes $ 373Taxes 147Net income $ 226All dollar values are in millions. DEF's had depreciation and amortization expenses of $71 million last year and 200 million shares and $600 million of debt outstanding as of the end of the year. Its stock is currently trading at $12.25 per share.Using the P/E multiple, what is the per share value of ABC's stock? What is the total value of ABC Company? Show your computations.
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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