1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Arlecino [84]
2 years ago
8

Suppose Rocky Brands has earnings per share of ​$2.33 and EBITDA of ​$29.3 million. The firm also has 5.3 million shares outstan

ding and debt of ​$125 million​ (net of​ cash). You believe​ Jared's Outdoor Corporation is comparable to Rocky Brands in terms of its underlying​ business, but​ Jared's has no debt. If​ Jared's has a​ P/E of 12.9 and an enterprise value to EBITDA multiple of 7.1​, estimate the Enterprise Value of Rocky Brands by using both multiples. Which estimate is likely to be more​ accurate?
Business
1 answer:
posledela2 years ago
3 0

Answer:

enterprise value to EBITDA.

Explanation:

The computation of the value of the stock using P/E ratio is shown below:-

Stock value = (P/E ratio × EPS) × Number of shares outstanding

= (12.9 × $2.33) × 5.3 million

= 159.3021 million

Now, the computation of the value of the stock using EBITDA multiple is shown below:-

Stock value = (EBITDA multiple × EBITDA) - Net debt

= (7.1 × $29.3 million) - $125 million

= 208.03 - $125 million

= 83.03

There is no equivalent corporate debt. It is easier to make a comparison at the operating level and thus a better measure of valuation is the enterprise value to EBITDA.

You might be interested in
Leona bought two different brands of wine from vineyards in Australia. When asked for her opinion about the wines, she said that
liraira [26]

Answer:

Post-Purchase Evaluation.

Explanation:

There are five stages of purchase decision making process as given below

  1.    Problem Recognition.
  2.    Information Search.
  3.    Evaluation of Alternatives.
  4.    Purchase Decision.
  5.    Post-Purchase Evaluation.

Since Leona has bought the product it will be post purchase act and also she is examining the taste of product, she is in the evaluation process of the product and hence she is in post purchase evaluation stage of buyer decision process.

3 0
3 years ago
At Mighty-Tuf Industrial Products Group, 30 percent of its employees are neither a citizen of the parent company nation nor the
horsena [70]

Employees that are not from the parent country or the host nation are known as third-country nationals.

<h3>Who are third-country nationals?</h3>

These are those employees that do not come from the country the company was founded in, or from the country that the company is operating in.

These employees are usually hired based on competence and not due to internal policies dictating that a certain number of nationals or home citizens must be hired.

Find out more on employee hiring policies at brainly.com/question/25907189.

4 0
2 years ago
Nathan has been unable to trust banks since the failure of his savings and loan bank. He claims that storing his hard-earned mon
Lerok [7]

Answer:

Nathan's contention is wrong.

Explanation:

Storage of money at home involves the opportunity cost of losing out on income that would've been generated had the same money been invested elsewhere or deposited with a bank.

Secondly, money stored at home is vulnerable to theft and other forms of risks.

Thirdly, stored money at home does not contribute to any economic benefit since such money is out of circular flow of money in the economy. So it yields no return.

Thus, Nathan's contention of stored money at home being costless is wrong.

4 0
3 years ago
A person who holds him- or herself out as a specialist or knowledgeable in a certain type of business is one type of
ruslelena [56]

Answer:

Merchant

Explanation:

4 0
3 years ago
Define and explain SMART?
SVEN [57.7K]
Being smart is something that's grown and cultivated, often by being curious enough to seek out new information and by recognising what you don't already know. Being smart is the ability to put ideas together, and create solutions to problems. Being smart is the ability to focus, concentrate, and communicate.
8 0
2 years ago
Other questions:
  • Define specialization and, with an example, show how specialization and voluntary exchange benefit both buyers and sellers in th
    14·1 answer
  • Fine office company employs general construction, inc. (gci), to renovate an office and signs a note for $10,000 payable to gci.
    12·1 answer
  • Economies of scale occur when a firm'sa. marginal costs are constant as output increases. b. long-run average total costs are de
    9·1 answer
  • What would be the situation if the price was moved from p2 to p3
    9·2 answers
  • kya clark borrowed 7500 ay 6%ordinary interest for 180 days after 40 days she made a partial payemnt of 2500 after another 70 da
    14·1 answer
  • Robert became quite well-to-do as founder and president of Carlson Auto Paint and Supply, Inc. (CAPS). Now, he wants to start a
    15·1 answer
  • One major reason countries trade with one another is to:
    11·2 answers
  • Assume that if you advertise and your rival advertises, you each will earn $4 million in profits. If neither of you advertises,
    12·1 answer
  • Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional
    8·2 answers
  • if the federal reserve decided to include virtual money like bitcoins in its measure of the money supply, what would be the effe
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!