HW 6 Fall 2010

HW 6 Fall 2010 - 2. Suppose that you were going to make an...

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Eric Schneck Brigham Young University Department of Finance ManEc 453 Money, Banking and Financial Markets Problem set #6 Due: October 21, 2010 Questions 1. What is the Market Value of the Company your group is assigned to follow: Company: INTEL Market Value 107.1 B What is the Enterprise Value of the same company? 88.68 B What accounts for the difference? The difference between the market value and the enterprise value are debt and cash. You will add debt and subtract cash from the market value to get enterprise value
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Unformatted text preview: 2. Suppose that you were going to make an offer to buy the small privately held company, Rockwell, Inc. Use the latest financial statements (June 30, 2010) to arrive at your offer price. Is this an equity valuation or an enterprise valuation? Historical data for the company: 2007 2008 2009 Sales 1,115,580 1,276,043 1,346,179 Net Income (9,325) (138,196) (106,575) Purchase Offer:...
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