HW _10 Answers

HW _10 Answers - Is this an equity valuation or an...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Brigham Young University Department of Finance ManEc 453 Money, Banking and Financial Markets Problem set #10 Due: November 16, 2011 Questions 1. What is the Market Value of the Company your group is assigned to follow: Company: Find on Yahoo web page Market Value What is the Enterprise Value of the same company? What accounts for the difference? Nert Debt defined as Interest bearing debt less Cash 2. Suppose that you were going to make an offer to buy the small privately held company, Rockwell, Inc. Use the financial statements (Dec 31, 2010 as found on blackboard under Course Documents) to assist in arriving at your offer price. price. Is this an equity valuation or an enterprise valuation? Historical data for the company: 2007 2008 2009 2010 Sales 1,115,580 1,276,043 1,346,179 1,985,251 Net Income (9,325) (138,196) (106,575) 134,290 1 times Sales (2010) = 1.985 million 5 times EBITDA (134.3 +21+`17) = .860 million Average = 1.422 million Purchase Offer:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Is this an equity valuation or an enterprise valuation? Enterprise Valuation Brigham Young University Department of Finance ManEc 453 Money, Banking and Financial Markets Problem set #10 Due: November 16, 2011 Questions 1. What is the Market Value of the Company your group is assigned to follow: Company: Market Value What is the Enterprise Value of the same company? What accounts for the difference? 2. Suppose that you were going to make an offer to buy the small privately held company, Rockwell, Inc. Use the financial statements (Dec 31, 2010 as found on blackboard under Course Documents) to assist in arriving at your offer price. 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: Is this an equity valuation or an enterprise valuation?...
View Full Document

Page1 / 2

HW _10 Answers - Is this an equity valuation or an...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online