George Mason University FNAN 341 Exprep assignment 02
Qn 1. What was Madison Makeup's enterprise value?
Qn 2. What was Madison Makeup's share price?
Qn
... [Show More] 3. What is the share price of Madison Makeup if the relevant peer multiple is the average EV/EBITDA for its peers?
What is the share price of Madison Makeup if the relevant peer multiple is the median P/B for its peers?
What is the share price of Madison Makeup if the firm is considered worse managed than its peers and the appropriate pricing multiple for the firm is the average EV/EBIT for the peer group, adjusted by 0.68 in the relevant direction.
What is the share price of Madison Makeup if the firm is considered faster growing than its peers and the appropriate pricing multiple for the firm is the median P/E for the peer group, adjusted by 1.68 in the relevant direction.
What is the share price of Madison Makeup if the firm is considered less risky than its peers and the appropriate pricing multiple for the firm is the average P/B for the peer group, adjusted by 1.76 in the relevant direction.
Qn 4. Is the following statement true or false? Enterprise value is based on all assets and all liabilities.
Which term is used to describe approaches that estimate the value of a firm (or its equity) as the present value of expected cash flows?
Which term is used to describe approaches that estimate the value of a firm (or its equity) by identifying the relationship between market value and a financial measure?
Which 2 of the 5 most common multiples involve measures that best reflect operating activities and performance?
Which 2 of the 5 most common multiples are most widely used by analysts for valuations?
Among analysts, managers, & lenders, which, if any, often have an incentive to overvalue firms?
Is the following statement true or false? Market comps valuation is a relatively difficult methodology to use
Is the following statement true or false? Market comps analysis involves intrinsic valuation
Which type of financial figures are easier to obtain and more difficult to manipulate in market comps analysis?
What term, popularized by Warren Buffet, refers to a business' ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms?
Is the following statement true or false? EV/EBITDA is a more popular multiple than EV/EBIT, and EV/EBITDA is always a superior multiple to EV/EBIT
Which of the 5 most common multiples can be used to value many firms because the book value assets often exceeds the book value of liabilities?
Is the following statement true or false? The quality of a firm’s management is relevant to valuing a firm
Firms A, B, & C have all just published buy recommendations of Firm X. Firm A’s report has poorly done analysis and no discussion of why the market is wrong in its evaluation of Firm X. Firm B’s report has very well done analysis and no discussion of why the market is wrong in its evaluation of Firm X. Firm C’s report has very well done analysis and a discussion of why the market is wrong in its evaluation of Firm X. Which firm or firms have reports that meet the minimum standards for being persuasive?
Which of the 5 most common multiples is intuitively appealing, because it involves a measure that reflects the bottom line?
Is the following statement true or false? DCF analysis involves intrinsic valuation
Under what conditions involving risk, growth, and management quality for a firm, should a peer multiple be adjusted down to get a more appropriate pricing multiple for a particular firm?
Which of the 5 most common multiples is especially useful for valuing relatively young firms?
Which of the 5 most common multiples can be used to value the greatest number of firms?
Qn 5. What is the estimated share price of Firm X based on the average of relevant peer multiples?
What is the estimated share price of Firm X based on the median of relevant peer multiples?
Qn 6. For each multiple, what is the 25th percentile for the relevant peer group?
For each multiple, what is the median for the relevant peer group?
For each multiple, what is the mean for the relevant peer group?
For each multiple, what is the 75th percentile for the relevant peer group?
For each multiple, what is the estimated share price for Trevor Pharmaceuticals based on a peer multiple computed from the 25th percentile for the relevant peer group?
For each multiple, what is the estimated share price for Trevor Pharmaceuticals based on a peer multiple computed from the median for the relevant peer group?
For each multiple, what is the estimated share price for Trevor Pharmaceuticals based on a peer multiple computed from the mean for the relevant peer group?
For each multiple, what is the estimated share price for Trevor Pharmaceuticals based on a peer multiple computed from the 75th percentile for the relevant peer group? [Show Less]