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Pellagia is a nationwide retail chain specializing in women’s apparel. The company has 135 million shares outstanding, 30 percent of which are publicly traded with a current market price of $5.63 per share. The company is expected to earn a net income of $38 million in the next twelve months.
What is the current enterprise value of Pellagia?
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- Suppose you are asked to value Jakson Inc given the following information Jakson Inc. is a nationwide retail chain specializing in women's apparel. The company has 135 million shares outstanding, 30% of which are publicly traded with a current market price of $5.63 per share. The company is expected to have net earnings of $29 million in the next 12 months. Forecast for sales and EBITDA are $533 million and $47 million respectively. Suppose you are asked to value Jakson given the following information in addition to that noted above (all are comparable public companies): Company Price to Earnings Price to Sales Comparable Company A 13.04 1.58 Comparable Company B 26.10 .78 Comparable Company C 15.36 1.41 Comparable Company D 18.59 .96 Comparable Company E 14.11 1.06 Using a relative value approach, what is your estimate for the value of equity of the company based on financial information and the above table? Note that your answer may be different than the trade value based on market…Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $4.4 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $7.4 million next year. Assets Liabilities and Equity Current assets $ 1,980,000 Current liabilities $ 1,672,000 Fixed assets 3,700,000 Long-term debt 1,800,000 Equity 2,208,000 Total assets $ 5,680,000 Total liabilities and equity $ 5,680,000 If fixed assets have enough capacity to cover the increase in sales and all other assets and current liabilities are expected to increase with sales, what amount of additional funds will Psy Ops need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.Raddus is a technology company and has an enterprise value of $100 million. It currently has $25 million in debt and $5 million in cash. Current estimates for FY1 EBITDA and FY2 EBITDA are $20 million and $30 million, respectively. Company A’s industry is currently growing EBITDA at 10%. The median EV/EBITDAFY1 multiple is 5x. Company A is currently growing EBITDA at 20%. Using this data, what price do you think this company should be trading at?
- Cheryl Colby, CFO of Charming Florist Ltd., has created the firm’s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 15 percent to $179.4 million. Current assets, fixed assets, and short-term debt are 20 percent, 90 percent, and 15 percent of sales, respectively. The company pays out 40 percent of its net income in dividends. The company currently has $27.2 million of long-term debt, and $13 million in common stock par value. The profit margin is 10 percent. Prepare the current balance sheet for the firm using the projected sales figure. Based on the sales growth forecast, how much does the company need in external funds for the upcoming fiscal yearSuppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $4.4 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $7.4 million next year. Assets Current $1,980,000 Current liabilities Long-term debt Equity assets Fixed assets 3,700,000 Liabilities and Equity Total assets $5,680,000 Total liabilities and equity $ 1,672,000 1,800,000 2,208,000 $ $5,680,000 If fixed assets have enough capacity to cover the increase in sales and all other assets and current liabilities are expected to increase with sales, what amount of additional funds will Psy Ops need from external sources to fund the expected growth? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.) Additional funds neededSuppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.9 million. The firm also has a profit margin of 25 percent and a retention ratio of 30 percent, and expects sales of $8.9 million next year. Assets Current assets Fixed assets Total assets $ 2,621,000 4,900,000 $ 7,521,000 Liabilities and Equity Current liabilities Long-term debt Equity Total liabilities and equity If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign. X Answer is complete but not entirely correct. Additional funds needed (243,300) X $ 2,557,140 1,950,000 3,013,860 $ 7,521,000
- The Optical Scam Company has forecast a sales growth rate of 20 percent for next year. Current assets, fixed assets, and short-term debt are proportional to sales. The current financial statements are shown here: Sales Costs Taxable income Taxes Net income Dividends Addition to retained earnings Current assets Fixed assets Total assets Assets Current assets Fixed assets INCOME STATEMENT Total assets $ 7,230,000 18,390,000 $ 1,149,982 1,724,853 Assets b-2. External financing needed c. Sustainable growth rate $ 25,620,000 a. Calculate the external funds needed for next year using the equation from the chapter. Note: Do not round intermediate calculations. External financing needed b-1. Prepare the firm's pro forma balance sheet for next year. Note: Do not round intermediate calculations. BALANCE SHEET Short-term debt Long-tern debt Common stock Accumulated retained earnings $ 30,500,000 26,077,300 $ 4,422,700 1,547,945 $ 2,874,755 Liabilities and Equity Total equity Total liabilities and…Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.2 million. The firm also has a profit margin of 30 percent and a retention ratio of 20 percent, and expects sales of $8.2 million next year. Assets Current assets Fixed assets Total assets $ 2,124,000 4,200,000 $ 6,324,000 Liabilities and Equity Current liabilities Long-term debt Equity Total liabilities and equity Additional funds needed $ If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign. Answer is complete but not entirely correct. 1,397,200 x $ 1,707,480 1,600,000 3,016,520 $ 6,324,000Farnsbeck Inc. is forecasting a 15% increase in sales next year. Assume the company is operating at 100% capacity. The company has 50,000 shares of common stock outstanding. The firm will pay out 60% of its Net Income in dividends and move 40% into retained earnings Based on the Income statement and balance sheet below answer the following questions. ASSETS 2020 2019 ASSETS 2020 2019 CASH AND MARKETABLE SECURITIES ACCOUNTS RECEIVABLE INVENTORIES 29,000 25,000 116,000 100,000 145,000 125,000 290,000 250,000 362,000 350,000 CURRENT ASSETS GROSS PLANT AND EQUIPMENT LESS: ACCUMULATED DEPRECIATION 130,000 100,000 232,000 250,000 NET FIXED ASSETS TOTAL ASSETS 522,000 500,000 LIABILITIES AND EQUITY 90,480 34,800 25,420 CURRENT LAIBILITIES 150,700 142,000 145,000 140,000 TOTAL LIABILITIES 295,700 282,000 150,000 150,000 78,000 ACCOUNTS PAYABLE ACCRURALS NOTES PAYABLE 30,000 34,000 LONG TERM DEBT COMMON STOCK ($1.00 par) RETAINED EARNINGS 76,300 68,000 TOTAL OWNER'S EQUITY 226,300 218,000 TOTAL…
- (Using common-size financial statements) The S&H Construction Company expects to have total sales next year totaling $14,500,000. In addition, the firm pays taxes at 35 percent and will owe $306,000 in interest expense. Based on last year's operations the firm's management predicts that its cost of goods sold will be 60 percent of sales and operating expenses will total 26 percent. What is your estimate of the firm's net income (after taxes) for the coming year? Pro-Forma Income Statement Sales Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Taxes Net income $ $ $ $ $Coke and Pepsi are well-known international brands. Coca-Cola Co. sells more than $34.5 billion each year while annual sales of PepsiCo products exceed $66 billion. Compare the two companies as a potential investment based on the following ratios as reported by csimarket.com for the twelve months ended September 27, 2019: Ratio PepsiCo a. Gross profit percentage Coca-Cola 61.30% 22.70% b. Net profit margin 55.00% 18.00% e. EPS $ 1.66 $ 8.82 d. Inventory turnover ratio 4.20 8.30 e. Current ratio 0.62 0.95 f. Debt-to-assets 0.76 0.82 9. P/E ratio 32.50 15.50 Required: 1. For each ratio listed, indicate whether it would be used to compare profitability, liquidity, or solvency, or whether it is not applicable (NA) to comparing companies. a. Gross profit percentage b. Net profit margin C. EPS d. Inventory turnover ratio e. Current ratio f. Debt-to-assets 9. P/E ratioSuppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.6 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8.6 million next year. Assets Current $2,396,000 Current liabilities assets Fixed assets 4,600,000 Liabilities and Equity Total assets $6,996,000 Long-term debt Equity Total liabilities and equity $ 2,168,760 1,800,000 3,027,240 $6,996,000 If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.) Additional funds needed