A car was valued at $36,000 in the year 2009. By 2013, the car
value had...
A car was valued at $36,000 in the year 2009. By 2013, the car
value had depreciated to $15,000. If the car's value continues to
drop by the same percentage, what will it be worth in 2020? Round
to the nearest dollar.
Solutions
Expert Solution
Hence , The value of car in 2020 will be 3240
dollars.
A delivery car had a first cost of $36,000, an annual operating
cost of $13,000, and an estimated $3500 salvage value after its
6-year life. Due to an economic slowdown, the car will be retained
for only 3 years and must be sold now as a used vehicle. At an
interest rate of 12% per year, what must the market value of the
used vehicle be in order for its AW value to be the same as the AW
if...
A delivery car had a first cost of $36,000 an annual operating
cost of $18,000, and an estimated $5500 salvage value after its
6-year life. Due to economic slowdown, the car will be retained for
only 3 years and must be sold now as a used vehicle. At an interest
rate of 15% per year, what must the market value of the used
vehicle be in order for its AW value to be the same as the AW if it...
Suppose a firm has had the
following historic sales figures.
Year:
2009
2010
2011
2012
2013
Sales
$
2,500,000
$
3,780,000
$
4,340,000
$
4,940,000
$
5,510,000
What would be the forecast for
next year’s sales using regression to estimate a trend?
Suppose a firm has had the following historic sales figures.
Year: 2009 2010 2011 2012 2013
Sales: $ 2,430,000. $ 3,850,000 $ 4,440,000 $ 4,920,000
$ 5,540,000
What would be the forecast for next year’s sales using
regression to estimate a trend?
Next years sales?
2. (a) Suppose a “lemons” car is valued at $2500 and a good car
is valued at $5000. If you know that there is a 50% chance of
getting each, what is the expected value of the car?
(b) What will happen in the market if the price is based on the
expected value? Explain.
Reggie, who is 55, had AGI of $36,000 in 2019. During the year,
he paid the following medical expenses:
Drugs (prescribed by physicians)
$
580
Marijuana (prescribed by physicians)
1,480
Health insurance premiums–after taxes
1,250
Doctors’ fees
1,330
Eyeglasses
455
Over-the-counter drugs
280
Required:
Reggie received $580 in 2019 for a portion of the doctors’ fees
from his insurance. What is Reggie’s medical expense deduction?
Suppose that in July 2013, Nike Inc. had EPS of $2.45 and a
book value of equity of $11.78 per share.
StartFraction Upper P Over Upper E EndFraction
P
E
StartFraction Price Over Book EndFraction
Price
Book
StartFraction Enterprise Value Over Sales EndFraction
Enterprise Value
Sales
StartFraction Enterprise Value Over EBITDA EndFraction
Enterprise Value
EBITDA
Average
29.84
29.84
2.44
2.44
1.12
1.12
9.76
9.76
Maximum
plus
+
136
136%
plus
+
70
70%
plus
+
55
55%
plus
+
86...
Suppose that in July 2013, Nike Inc. had EPS of $2.61 and a
book value of equity of $12.52 per share.
p/e | price/book | enterprise value / sales |
enterprise value/EBITDA
AVG: 29.84 | 2.44 | 1.12 | 9.76
MAX: +136% | +70% | +55% | +86%
MIN: -62% | -63% | -48% | -34%
a. Using the average P/E multiple from the table above,
estimate Nike's share price.
b. What range of share prices do you estimate...
Suppose that in July 2013, Nike Inc. had EPS of $2.36 and a
book value of equity of $13.27 per share.
P/e
Price/Book
Enterprise Value/Sales
Enterprise Value/EBITDA
Average
29.84
2.44
1.12
9.76
Max
+ 136%
+ 70%
+55%
+86%
Min
-62%
-63%
-63%
- 34%
a. Using the average P/E multiple from the table above,
estimate Nike's share price.
b. What range of share prices do you estimate based on the
highest and lowest P/E multiples in the table above?...
In July 2013, Nike had EPS of $2.52 and a book value of equity
of $12.48 per share.
a. Using the average P/E mulitple in Table 2, estimate Nike's
share price.
b. What range of share prices do you estimate based on the
highest and lowest P/E multiples in Table 2?
c. Using the average price-to-book value mlutiple in Table 2,
estimate Nike's share price.
d. What range of share prices do you estimate based on the
highest and lowest...