Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 307 Weeks Ago, 5 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 29 Apr 2018 My Price 8.00

Happy Times, Inc

Happy Times, Inc. wants to expand its party stores into the Southeast. In order to establish an immediate presence in the area, the company is considering purchasing a privately-held firm called JoeAc€?cs Party Supply. Happy times currently has debt outstanding with a market value of $140 million and a YTM of 6%. The companyAc€?cs market capitalization is $380 million, and the required return on equity is 11%. JoeAc€?cs currently has debt outstanding with a market value of $30.5 million. The EBIT for JoeAc€?cs next year is projected to be $12.5 million. EBIT is expected to grow at 10% per year for the next 5 years before slowing down to 3% in perpetuity. Net working capital, capital spending, and depreciation as a percentage of EBIT are expected to be 9%, 15%, and 8%, respectively. JoeAc€?cs has 1.85 million shares among its limited owners and both companies face a 38% tax rate. a) Based on these estimates, what is the maximum share price that Happy Times should be willing to pay for JoeAc€?cs? b) After examining your analysis, the CFO of Happy Times is uncomfortable using the perpetual growth rate in cash flows. Instead, she feels that the terminal value should be estimated using the multiple EV/EBITDA (i.e. Ac€A?enterprise valueAc€?? to Ac€A?earnings before interest, taxes, depreciation, and amortizationAc€??). If the appropriate multiple is 8, what is your new estimate of the maximum share price for the purchase?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Apr 2018 07:04 PM My Price 8.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------.Pl-----------eas-----------e p-----------ing----------- me----------- on-----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be-----------

Not Rated(0)