Question
In: Finance
Company Detox, is a private company that designs, manufactures and distributes certain consumer products. In this...
Company Detox, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Detox had revenues of $367M and earnings of $27M. Detox company has filed a registration statement with the SEC for its IPO. If the industry average MV/Earnings ratio and MV/Revenues ratio for the recent fiscal year were 27.08 and 0.64 respectively. Estimate the IPO price for Detox Company using the MV/Revenues ratio and assuming that they will issue 21M shares.
Solutions
Expert Solution
Detox Company market value using the MV/Revenues ratio
= MV/Revenues ratio* Detox revenues
=0.64*367
=234.88 million
the IPO price for Detox Company=234.88/21=11.18
jeff jeffy answered 2 years agoRelated Solutions
Company Detox, is a private company that designs, manufactures and distributes certain consumer products. In this...
Company Detox, is a private company that designs, manufactures
and distributes certain consumer products. In this fiscal year,
Detox had revenues of $364M and earnings of $29M. Detox company has
filed a registration statement with the SEC for its IPO. If the
industry average MV/Earnings ratio and MV/Revenues ratio for the
recent fiscal year were 20.19 and 0.59 respectively. Estimate the
IPO price for Detox Company using the MV/Earnings ratio and
assuming that they will issue 20M shares.
Company Detox, is a private company that designs, manufactures and distributes certain consumer products. In this...
Company Detox, is a private company that designs, manufactures
and distributes certain consumer products. In this fiscal year,
Detox had revenues of $404M and earnings of $18M. Detox company has
filed a registration statement with the SEC for its IPO. If the
industry average MV/Earnings ratio and MV/Revenues ratio for the
recent fiscal year were 30.62 and 0.85 respectively. Estimate the
IPO price for Detox Company using the MV/Earnings ratio and
assuming that they will issue 22M shares.
Company detox, is a private company that designs, manufactures and distributes certain consumer products. in this...
Company detox, is a private company that designs, manufactures
and distributes certain consumer products. in this fiscal year
detox had revenues of 389M and earnings of 15M. Detox company has
filed a registration statement with the SEC for its IPO. If the
industry average MV/earnings and MV/revenues ratio for the recent
fiscal year were 32.25 and 0.82 respectively. Estimate the IPO
price for detox company using the MV, earnings ratio and assuming
that they will issue 29M shares.
A company is engaged in the manufacture of certain leather consumer products. The products are shoes,...
A company is engaged in the manufacture of certain leather
consumer products. The products are shoes, ladies leather hand
bags, purses and belts. The company accounted for about 10% of the
market share in shoes, which is its main product. Since last year,
the company has been facing stiff competition from another firm
which has come up recently in the city. This is reflected in the
declining monthly sale. The company is concerned over this
development and would like to...
1. A US company designs its products in US but manufactures those products in China. a)...
1. A US company designs its products in US but manufactures
those products in
China.
a) What type of currency exposure the US Company will face?
b) List three strategies to manage the operation exposure, and
explain how
they can be used to hedge the operation exposure.
2. A US company has a manufacturing subsidiary in Brazil and it
categorizes
Brazilian Real as the functional currency.
a) Explains the concept of functional currency;
b) Under US accounting, what currency translation...
Franklin Products Limited manufactures and distributes a number of products to retailers. One of these products,...
Franklin Products Limited manufactures and distributes a number
of products to retailers. One of these products, SuperStick,
requires five kilograms of material D236 in the manufacture of each
unit. The company is now planning raw materials needs for the third
quarter—July, August, and September. Peak sales of SuperStick occur
in the third quarter of each year. To keep production and shipments
moving smoothly, the company has the following inventory
requirements:
The finished goods inventory on hand at the end of...
Franklin Products Limited manufactures and distributes a number of products to retailers. One of these products,...
Franklin Products Limited manufactures and distributes a number
of products to retailers. One of these products, SuperStick,
requires five kilograms of material D236 in the manufacture of each
unit. The company is now planning raw materials needs for the third
quarter—July, August, and September. Peak sales of SuperStick occur
in the third quarter of each year. To keep production and shipments
moving smoothly, the company has the following inventory
requirements:
The finished goods inventory on hand at the end of...
Franklin Products Limited manufactures and distributes a number of products to retailers. One of these products,...
Franklin Products Limited manufactures and distributes a number
of products to retailers. One of these products, SuperStick,
requires five kilograms of material D236 in the manufacture of each
unit. The company is now planning raw materials needs for the third
quarter—July, August, and September. Peak sales of SuperStick occur
in the third quarter of each year. To keep production and shipments
moving smoothly, the company has the following inventory
requirements:
The finished goods inventory on hand at the end of...
Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes...
Cannington Inc. designs, manufactures, and markets personal
computers and related software. Cannington also manufactures and
distributes music players (cPod), mobile phones (cPhone), and
smartwatches (Cannington Watch) along with related accessories and
services, including online distribution of third-party music,
videos, and applications. The following information was taken from
a recent annual report of Cannington: Property, Plant, and
Equipment (in millions): Current Year Preceding Year Land and
buildings $569,240 $330,159 Machinery, equipment, and internal-use
software 540,778 426,930 Other fixed assets 688,780 518,008...
Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes...
Cannington Inc. designs, manufactures, and markets personal
computers and related software. Cannington also manufactures and
distributes music players (cPod), mobile phones (cPhone), and
smartwatches (Cannington Watch) along with related accessories and
services, including online distribution of third-party music,
videos, and applications. The following information was taken from
a recent annual report of Cannington:
Property, Plant, and Equipment (in
millions):
Current Year
Preceding Year
Land and buildings
$494,500
$286,810
Machinery, equipment, and internal-use software
469,775
370,875
Other fixed assets
598,345
449,995 ...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1. What is the historical role of investment bankers ? Has this role changed ? Why...
- How were the original Internet requirements met through its design? What are the two main requirements...
- discuss crowdfunding on platforms: What features of the services incorporate virality? What are some of the...
- A textbook of mass 2.08 kg rests on a frictionless, horizontal surface. A cord attached to...
- Describe a time when someone did not really listen to or understand a point you were...
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
ADVERTISEMENT