The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | Apr 2017 |
| Last Sign in: | 419 Weeks Ago, 2 Days Ago |
| Questions Answered: | 3232 |
| Tutorials Posted: | 3232 |
MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
It is April 4, 2011, and your company is considering the possibility of purchasing the Chrysler automobile manufacturing business. The private equity investors who own Chrysler have hinted that they might be interested in selling the firm. Since Chrysler does not have publicly traded shares of its own, you have decided to use Ford Motor Company as a comparable company to help you determine the market value of Chrysler.
This morning, Ford’s common stock was trading at $16.69 per share, and the company had 3.47 billion shares outstanding. You estimated that the market value of all of the company’s other outstanding securities (excluding the common stock but including special shares owned by the Ford family) is $100 billion and that its revenues from auto sales were $133.4 billion last year. Chrysler’s revenue in 2010 was $50.0 billion. Based on the enterprise value/revenue ratio, what is the total value of Chrysler that is implied by the Ford market values?
Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l