Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. i need an answer to this question please without u

i need an answer to this question please without using excel and with formulas used...

50.1K

Verified Solution

Question

Accounting

image
i need an answer to this question please without using excel and with formulas used
2. Xstar Corporation's cost of capital is 9.21%. Income statements of the Xstar for 2018 and 2019 are given below: 2018 2019 NET SALES 5,026 7.622 Cost of sales and operating expenses 1,726 2,422 Depreciation 420 560 EBIT Interest expense 620 75 EBT 2,160 2,890 Taxes 850 876 NET INCOME For the corresponding multiples, which are provided in table below, calculate the intrinsic value of the firm in 2019. If the price offered is $31,000, which will be paid after 3 years, what would be your recommendation in this deal for the seller? Show each step in your calculations (40 MARKS) Revenue EBIT Net Income 4.61 7.49 8.11 Multiple Values for 2016

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students