Question

In: Finance

The following table provides summary information for Tom, Inc., and its competitors Andy Corp. and Patrick...

The following table provides summary information for Tom, Inc., and its competitors Andy Corp. and Patrick Enterprises. Use the information to compute the Price to NOPAT ratio for Andy and Patrick. In addition, using the Andy and Patrick as comparables, compute Tom’s company intrinsic value, equity intrinsic value, and equity intrinsic value per share.

Next, use the information to compute the Price to Net Income ratio for Andy Corp. and Patrick Enterprises. In addition, using Andy Corp. and Patrick Enterprises as comparables, compute Tom, Inc.’s equity intrinsic value and equity intrinsic value per share.

(amounts in millions) Tom, Inc. Andy Corp. Patrick Enterprises
Company assumed value $76.25 $140.94
Equity assumed value 70.40 123.30
NOPAT 41.04 8.90 26.56
Net income 40.61 7.43 21.79
Net nonoperating obligations 41.20 5.85 17.64
Common shares outstanding 22.98 7.78 11.54

Solutions

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

The following table provides summary information for Tom, Inc., and its competitors Andy Corp. and Patrick...
The following table provides summary information for Tom, Inc., and its competitors Andy Corp. and Patrick Enterprises. Use the information to compute the Price to NOPAT ratio for Andy and Patrick. In addition, using the Andy and Patrick as comparables, compute Tom’s company intrinsic value, equity intrinsic value, and equity intrinsic value per share. Next, use the information to compute the Price to Net Income ratio for Andy Corp. and Patrick Enterprises. In addition, using Andy Corp. and Patrick Enterprises...
Valuation Using Income Statement Multiples The following table provides summary data for Target and its competitors,...
Valuation Using Income Statement Multiples The following table provides summary data for Target and its competitors, Kohl's and Wal-Mart. (in millions) Target Kohl's Wal-Mart Company assumed value -- $23,098 $237,306 Equity assumed value -- $22,470 $198,288 NOPAT $3,159 $1,152 $13,354 Net income $2,787 $1,109 $12,178 Net nonoperating obligations (assets) $10,109 $628 $39,018 Common shares outstanding 860 shares 321 shares 41 shares (a) Compute the price to NOPAT ratio for both Kohl's and Wal-Mart. Round your answers to two decimal places....
Valuation Using Price-to-NOPAT Multiple The following table provides summary data for Applied Materials Inc. and its...
Valuation Using Price-to-NOPAT Multiple The following table provides summary data for Applied Materials Inc. and its competitors, KLA Tencor Corporation and Lam Research Corporation. (in millions) Applied Materials KLA Tencor Lam Research Company assumed value - $9,791 $11,530 Equity assumed value - $8,988 $13,245 NOPAT $1,444 $440 $674 Net income $1,377 $366 $656 Net nonoperating obligations (assets) $(1,369) $803 $(1,715) Common shares outstanding 1,160.0 157.9 158.5 a. Compute the price to NOPAT ratio for both KLA Tencor Corporation and Lam...
Valuation Using Price-to-NOPAT Multiple The following table provides summary data for Applied Materials Inc. and its...
Valuation Using Price-to-NOPAT Multiple The following table provides summary data for Applied Materials Inc. and its competitors, KLA Tencor Corporation and Lam Research Corporation. (in millions) Applied Materials KLA Tencor Lam Research Company assumed value - $9,791 $11,530 Equity assumed value - $8,988 $13,245 NOPAT $1,444 $440 $674 Net income $1,377 $366 $656 Net nonoperating obligations (assets) $(1,369) $803 $(1,715) Common shares outstanding 1,160.0 157.9 158.5 a. Compute the price to NOPAT ratio for both KLA Tencor Corporation and Lam...
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target Corp....
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target Corp. and its competitors, Kohl’s Corp. and Walmart Stores Inc. (in millions) Target Kohl's Wal-Mart Company assumed value -- $13,255 $251,159 Equity assumed value -- $9,254 $209,830 Net operating assets $21,671 $9,492 $124,940 Book value of equity $12,957 $5,491 $83,611 Net nonoperating obligations (assets) $8,714 $4,001 $41,329 Common shares outstanding 640.2 shares 186.0 shares 3,262.0 shares (a) Compute the price to net operating assets ratio...
Huntley Corp. provides the following information about its pension plan for the year 2021:                            &
Huntley Corp. provides the following information about its pension plan for the year 2021:                                                                                                                            2021 Fair value of plan assets, first of year $134,100 Defined benefit obligation (DBO) (assumed To equal the ABO for funding purposes under ASPE), first of year 212,700 Current service cost for year                                                                               13,000 Interest or discount rate on the DBO/plan assets                                                  10% Actual earnings on plan assets for year                                                                12,000 Employer contributions for year (funding), September 31, 2021                        24,000...
The following table provides summary statistics for the DurationSurgery based on whether or not patients contracted...
The following table provides summary statistics for the DurationSurgery based on whether or not patients contracted an SSI from the Seasonal Effect data set. One of the researchers is curious whether there is evidence to suggest that surgery duration was longer in patients who contracted SSIs. Use the following information to conduct the following hypothesis test: A one-tail T-test for a two-sample difference in means at the 99% confidence level with Null Hypothesis that the average surgery duration in patients...
Paul Inc, a calendar year C-Corp and accrual method taxpayer, provides the following information and wants...
Paul Inc, a calendar year C-Corp and accrual method taxpayer, provides the following information and wants a Schedule M-1 prepared (state which line each amount should be on on Schedule M-1). Journal entries should also be prepared. Net Income per Book 535,000 Tax Exempt Interest Income 300 Federal Income Tax Paid 12,000 Life Insurance Proceeds 80,000-received upon death of key employee-the President Capital Loss 8,000 MACRS Tax Depreciation 200,000 - depreciation taken on the tax return Book Depreciation 20,000 -...
1. Consider the following table that provides information for a firm’s short-run production function and its...
1. Consider the following table that provides information for a firm’s short-run production function and its product demand, given by the column labeled D1. Labor Output Price (D1) 0 0 $10.00 1 16   10.00 2 31   10.00 3 45   10.00 4 58   10.00 5 69   10.00 6 78   10.00 Based on that information, calculate Total Revenue (TR), Marginal Revenue Product (MRP), Marginal Product of Labor (MP) and Value of the Marginal Product (VMP), then answer the following questions: Assume that...
Lansing, Inc. provides the following information for one of its department’s operations for June (no new...
Lansing, Inc. provides the following information for one of its department’s operations for June (no new material is added in Department T): WIP inventory—Department T Beginning inventory ((8,000 units, 20% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 33,350 Department T conversion costs 9,020 Current work (18,500 units started) Prior department costs 83,250 Department T costs 168,480 The ending inventory has 3,000 units, which are 50 percent complete with respect to Department T costs and...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT