Question 2 3 pts You have been asked to value Jim's Shoes, a retail store in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 2 3 pts You have been asked to value Jim's Shoes, a retail store in Wilmington. Jim's Shoes has been in business for 15 years, its financial position is very stable, growing about 3% per year - it is expected to grow at the same rate in the future. The most current income statement is shown below. You have done an analysis, and have calculated the appropriate discount rate at 25%. Jim works in the business fulltime, and has never taken a salary. Instead he simply lives on the profit. You have done some research, and have found that a shoe store manager makes about $60,000 per year. What is the fair market equity value of Jim's Shoes. Pick the closest (rounded) answer. Jim's Shoes Revenues $300,000 Expenses $200,000 Profit $100,000 $257,500 $187,273 $206,000 $234,091 Question 2 3 pts You have been asked to value Jim's Shoes, a retail store in Wilmington. Jim's Shoes has been in business for 15 years, its financial position is very stable, growing about 3% per year - it is expected to grow at the same rate in the future. The most current income statement is shown below. You have done an analysis, and have calculated the appropriate discount rate at 25%. Jim works in the business fulltime, and has never taken a salary. Instead he simply lives on the profit. You have done some research, and have found that a shoe store manager makes about $60,000 per year. What is the fair market equity value of Jim's Shoes. Pick the closest (rounded) answer. Jim's Shoes Revenues $300,000 Expenses $200,000 Profit $100,000 $257,500 $187,273 $206,000 $234,091
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Some economists argue that Inflation numbers calculated by CPI are not accurate especially during the pandemic. Explain why do they believe inflation numbers are not that accurate during pandemic?
-
Find Y in the network infigure. ????"/> ww ji s -j2 s Y 25 -j1 s 2S j2s
-
Which of the following is derivable? a. A customers Zip code b. A students age c. Cost per unit of inventory d. All of the above are derivable
-
One can multiply a constant (multiplier) times a firm's EBITDA. Explain what one gets from the product.
-
Camp Surplus began May 2014 with 67 tents that cost $25 each. During the month, Camp Surplus made the following purchases at cost: Camp Surplus sold 323 tents, and at May 31 the ending inventory...
-
\f
-
Coronado Electronics Inc. produces and sells two models of calculators, XQ-103 and XQ-104. The calculators sell for $10 and $20, respectively. Because of the intense competition Edington faces,...
-
Your client is the Mission Mountain Shopping Center Inc., a shopping center with 30 store tenants. All leases with the store tenants provide for a fixed rent plus a percentage of sales, net of sales...
-
Insurance is a contract in which the company providing the insurance agrees to assume some of the risks of the insured party for consideration or the payment of a premium. The three primary...
-
What are the equations for the consumption, net exports, and aggregate expenditures functions? Use the information in the following table Y C G X $100 $120 $20 $30 $10 $300 $300 $20 $30 -$10 $500...
-
Occurrence policies cover all accidents during a policy year, regardless of when they are reported, whereas claims-made policies cover claims made or reported during the policy year, no matter when...
-
Your client, Zitzitz Inc., issues its own trading stamps along with the sale of merchandise. These stamps are redeemable at Zitzitz when a book is filled. Thus, with each sale Zitzitz creates a...
-
Most manufacturing companies have gross margin goals, and Sheridan's is no different. Sheridan's makes lightweight backpacks that are suitable for a number of purposes. Management at the company has...
-
What is the order p of a B + -tree? Describe the structure of both internal and leaf nodes of a B + -tree.
-
The post-implementation audit is vitally important in improving the practice of project management and the process of project management, yet it is always so difficult to get senior management and...
-
You are the project manager of a caveman group going out to hunt mastodons. Describe your efforts at risk mitigation. (Lo4)
-
You have used the three-point method to estimate the duration of an activity that you know will be critical to the project. The estimate produces a very large difference between the optimistic and...
Study smarter with the SolutionInn App