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Naddika [18.5K]
3 years ago
7

IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business developme

nt​ strategy, in late 2013 you initiate discussions with​ IDX's founder about the possibility of acquiring the business at the end of 2013. Estimate the value of IDX per share using a discounted FCF approach and the following​ data: bullet ​Debt: $ 40 million bullet Excess​ cash: $ 108 million bullet Shares​ outstanding: 50 million bullet Expected FCF in​ 2014: $ 49 million bullet Expected FCF in​ 2015: $ 51 million bullet Future FCF growth rate beyond​ 2015: 4 % bullet ​Weighted-average cost of​ capital: 9.4 %
Business
1 answer:
dimulka [17.4K]3 years ago
4 0

Answer:

Check the explanation

Explanation:

(Kindly note: all numbers in millions)

Discounted Cash Flow valuation of company's operating assets as of 2013 year end= PV of FCF in Yr 2014+Terminal FCF in Yr 2015*(1+Terminal growth rate)/(WACC-Terminal growth Rate)

=49/1.094+51*1.05/(0.094-0.05)

44.79+44.79/0.044

=1062.69

Firm equity value= Value of net operating assets+Cash-Debt=1062.69+108-40=1130.69

Value of IDX per share=Firm equity value/No of shares outstanding=1130.69/50=22.61

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Answer:

Trade is a basic economic concept that involves  the buying and selling of goods and services, in which compensation is  paid by a buyer to a seller, for goods or services or the exchange of goods or services between parties(which is known as trade by barter )

Explanation:

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Anne is a full-time student at UCLA buts works part-time as a waitress at a diner near her dormitory. She earns an hourly wage b
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3 years ago
Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $425,000, and its year-e
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Answer:

Faldo Corp

Customers are paying late by 6.5 days (51.5 - 45)

Explanation:

DSO = Accounts Receivable/Sales last year * 365 days

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= 51.5 days

Customers are paying late by 6.5 days (51.5 - 45)

b) Faldo Corp's Days Sales Outstanding (DSO) is an estimate of the number of days it takes Faldo to collect its outstanding accounts receivable.  This means that DSO measures how long it takes Faldo's customers to pay an invoice.  Faldo can calculate its DSO by dividing the total accounts receivables of last year by the total credit sales of last year.  This is then multiplied by 365 days.

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2 years ago
A consumer equilibrium is a situation in which a consumer has allocated​ _____ of her income in a way that​ _____. A. ​all; maxi
ludmilkaskok [199]

Answer:

The correct answer is (D) all, maximizes her total utility.

Explanation:

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Suppose the United States is currently producing 200 tons of hamburgers and 60 tons of tacos and Mexico is currently producing 4
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Answer:

Explanation:

United States is producing 200 tons of hamburgers and 60 tons of tacos.

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United States' opportunity cost for producing 60 tons of tacos.

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So we see that US has a lower opportunity cost in producing hamburgers, so it has a comparative advantage in producing hamburgers.

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Since US specializes in making hamburgers, it will produce 200 tons of hamburgers and 0 tons of tacos.

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