Data for two hypothetical companies in the pharmaceutical industry, DriveMed and MAT Technology, are given...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Data for two hypothetical companies in the pharmaceutical industry, DriveMed and MAT Technology, are given in the table below. For both companies, expenditures in fixed capital and working capital during the previous year reflected anticipated average expenditures over the foreseeable horizon. DriveMed MAT Tech. Current price $46.00 $78.00 Trailing CF per share $3.60 $6.00 P/CF 12.8 13.0 Trailing FCFE per share $1.00 $5.00 P/FCFE 46.0 15.6 Consensus five-year growth forecast 15% 20% Beta 1.25 1.25 On the basis of the information supplied, discuss the valuation of MAT Technology relative to DriveMed. Justify your conclusion.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.