Madison Square Garden Sports Corporation (ticker symbol: MSGS) owns the New York Knickerbockers basketball team, which...

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Madison Square Garden Sports Corporation (ticker symbol: MSGS) owns the New York Knickerbockers basketball team, which currntly has an estimated value of $5.8 billion, and the New York Rangers hockey team, which currently has an estimated value of $2 billion. The company has net debt of $200 million and 24 million shares outstanding. MSGS recently traded at $154/share. (i) Using this information and the sum-of-the-parts methodology calculate (a) the implied net asset value (NAV) per share of MSGS, and (b) the premium or discount of the company's current market capitalization to this NAV. (8 points) (ii) Provide one reason why the premium or discount you calculated in part (1) above may persist [note: you might want to use the Internet to help you here]. (6 points) Madison Square Garden Sports Corporation (ticker symbol: MSGS) owns the New York Knickerbockers basketball team, which currntly has an estimated value of $5.8 billion, and the New York Rangers hockey team, which currently has an estimated value of $2 billion. The company has net debt of $200 million and 24 million shares outstanding. MSGS recently traded at $154/share. (i) Using this information and the sum-of-the-parts methodology calculate (a) the implied net asset value (NAV) per share of MSGS, and (b) the premium or discount of the company's current market capitalization to this NAV. (8 points) (ii) Provide one reason why the premium or discount you calculated in part (1) above may persist [note: you might want to use the Internet to help you here]. (6 points)

Answer rating: 100% (QA)

1 a To calculate the implied Net Asset Value NAV per share of MSGS we need to add the estimated values of the New York Knickerbockers 58 billion and t... View the full answer