Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. using the following information, estimate the tota

Using the following information, estimate the total value of this privately held company. ...

50.1K

Verified Solution

Question

Finance

  1. Using the following information, estimate the total value of this privately held company.

Estimates of Year 1 (next year) financial performance (Unit: $ million)

Revenue

900

Costs of goods sold

100

Selling, general and administrative expenses including R&D

200

Depreciation

50

Property and equipment

1100

Working capital

150

Current (Year 0) financial data (Unit: $ million)

Property and equipment

950

Working capital

110

Other information for valuation

Operating tax rate

21%

The estimated growth rate of cash flows

(Assume that this growth rate is constant)

6%

This company has no debt.

Assume that 14% is the required return on this companys assets.

Answer: $_____________ million

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

Algebra
1.2K views

7 y 2x 10 y 4x 8 8 y x 4 y 3x 4

Finance
1.2K views

explain relationship between credit risk and interest risk of corporate bonds( discuss in detail)

Physics
1.2K views

A position dependent force F acting on a particle and its force position curve is...

Basic Math
1.2K views

8 What is the monthly payment for a 20 000 loan for 4 years with...

Calculus
1.2K views

DETAILS 8 0 11 Points Explain why the function is discontinuous at the given number...

Algebra
1.2K views

11 12 Convert hours to minutes Enter your answer as an hours minutes integer or...

Algebra
1.2K views

You choose to invest your 3 110 income tax refund check rather than spend it...

Accounting
1.2K views

On January 1, 2018, Watch Works Incorporated (WWI) issued $80,000 par value, 2%,...

Accounting
1.2K views

Lance's Diner tiene un especial de almuerzo caliente todos los das de la semana y...

Accounting
1.2K views

Bank Three currently has $800 million in transaction deposits on its balance sheet. The Federal...

Finance
1.2K views

Two parts to question P6-5 (similar to) Question Help v (Related to Checkpoint 6.1)...

Accounting
1.2K views

could someone help with this problem 5. Tyler Corporation was...