Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

2 Subjects

Module 15 Homework

Module 15 Homework

Q Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page. A company with 340,000 common shares outstanding had the following most recent income statement: Sales $20,000,000 - Cost of goods sold -12,000,000 Gross profit 8,000,000 - Operating expenses 6,000,000 EBITDA 2,000,000 - Depreciation 400,000 EBIT 1,600,000 - Interest expense 100,000 - Taxes 525,000 Net Income 975,000 In addition, the company had cash flow from operations of $1,200,000. If you were a financial analyst using the following five multipliers in your analysis, what value would you put on each share of common stock of the company in each of these five cases? 1. Earnings multiplier = 22 2. Cash flow from operations multiplier = 18 3. EBIT multiplier = 16 4. EBITDA multiplier = 13 5. Sales multiplier = 1.2 PreviousNext

View Related Questions

Solution Preview

Module 15 Chapter 17 & 18 Sales $2,00,00,000 Cost of Goods Sold $1,20,00,000 Gross Profit $80,00,000 Operating Expenses $60,00,000 EBITDA $20,00,000 Depreciation $4,00,000 EBIT $16,00,000 Interest Expense $1,00,000 Taxes $5,25,000