Question
In: Finance
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and...
Valuation Using
Price-to-NOA Multiple and PB Multiple
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 | -- | $22,098 | $252,306 |
| Equity assumed value | -- | $21,470 | $213,288 |
| Net operating assets | $26,152 | $6,231 | $100,591 |
| Book value of equity | $15,633 | $5,603 | $61,573 |
| Net nonoperating obligations (assets) | $10,519 | $628 | $39,018 |
| Common shares outstanding | 860 shares | 321 shares | 41 shares |
(a) Compute the price to net operating assets ratio for both Kohl's and Wal-Mart.
Round your answers to
two decimal places.
Kohl's Answer
Correct
Mark 1.00 out of 1.00
Wal-Mart Answer
Correct
Mark 1.00 out of 1.00
(b) Use Kohl's and Wal-Mart as comparables, along with the price to
NOA ratios from part (a), and then estimate for Target its company
intrinsic value, its equity intrinsic value, and its equity
intrinsic value per share.
Round the intrinsic
value and equity intrinsic value to the nearest million and the
value per share to the nearest cent.
Average of the two rounded ratios (a) above
Answer
Correct
Mark 1.00 out of 1.00
(Round to two decimal places.)
Use your rounded
answer above to calculate the following:
Company intrinsic value $Answer
Correct
Mark 1.00 out of 1.00
million
Equity intrinsic value $Answer
Incorrect
Mark 0.00 out of 1.00
million
Equity intrinsic value per share $Answer
Incorrect
Mark 0.00 out of 1.00
(c) Compute the PB ratio for both Kohl's and Wal-Mart.
Round your answers to
two decimal places.
Kohl's Answer
Incorrect
Mark 0.00 out of 1.00
Wal-Mart Answer
Incorrect
Mark 0.00 out of 1.00
(d) Use Kohl's and Wal-Mart as comparables, along with the PB
ratios from part (c), and then estimate for Target its equity
intrinsic value and its equity intrinsic value per share.
Round the equity
intrinsic value to the nearest million and the value per share to
the nearest cent.
Average of the two rounded ratios in (c) above
Answer
Incorrect
Mark 0.00 out of 1.00
(Round to two decimal places.)
Use the rounded
average calculated above to calculate the following:
Equity intrinsic value $Answer
Incorrect
Mark 0.00 out of 1.00
million
Equity intrinsic value per share $Answer
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and...
Valuation Using Price-to-NOA Multiple and PB Multiple
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
--
$21,598
$242,306
Equity assumed value
--
$20,970
$203,288
Net operating assets
$25,152
$6,231
$100,591
Book value of equity
$15,633
$5,603
$61,573
Net nonoperating obligations (assets)
$9,519
$628
$39,018
Common shares outstanding
860 shares
321 shares
41 shares
(a) Compute the price to net operating assets ratio for both
Kohl's and...
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and...
Valuation Using Price-to-NOA Multiple and PB Multiple
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
Net operating assets
$25,952
$6,040
$89,991
Book value of equity
$15,033
$5,603
$61,573
Net nonoperating obligations (assets)
$10,109
$628
$39,018
Common shares outstanding
860 shares
321 shares
41 shares
(a) Compute the price to net operating assets ratio for both
Kohl's and...
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and...
Valuation Using Price-to-NOA Multiple and PB Multiple
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
--
$24,098
$237,306
Equity assumed value
--
$23,470
$198,288
Net operating assets
$24,152
$6,231
$100,591
Book value of equity
$15,633
$5,603
$61,573
Net nonoperating obligations (assets)
$8,519
$628
$39,018
Common shares outstanding
860 shares
321 shares
41 shares
(a) Compute the price to net operating assets ratio for both
Kohl's and...
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and...
Valuation Using Price-to-NOA Multiple and PB Multiple
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
--
$21,598
$242,306
Equity assumed value
--
$20,970
$203,288
Net operating assets
$25,152
$6,231
$100,591
Book value of equity
$15,633
$5,603
$61,573
Net nonoperating obligations (assets)
$9,519
$628
$39,018
Common shares outstanding
860 shares
321 shares
41 shares
(a) Compute the price to net operating assets ratio for both
Kohl's and...
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...
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 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....
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...
The following table provides data for a project. Use the data to answer the following questions...
The following table provides data for a project. Use the
data to answer the following questions
Activity
Immediate
Predecessor
Time Estimates (weeks)
Optimistic
Most Likely
Pessimistic
Expected
Variance
A
-
6
7
14
B
-
8
10
12
C
A
2
3
4
D
A
6
7
8
E
B,C
5
5.5
9
F
B,C
5
7
9
G
D,E
4
6
8
H
F
2.5
3
3.5
Draw a network to represent the above project.
What is the critical...
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