Question
In: Finance
Consider recent financials for Ellie's Essentials LLC: Balance Sheet 2018 2017 Current Assets $11,438.00 $10,000.00 Net...
Consider recent financials for Ellie's Essentials LLC:
Balance Sheet
| 2018 | 2017 | |
|---|---|---|
| Current Assets | $11,438.00 | $10,000.00 |
| Net PPE | $31,000.00 | $30,000.00 |
| Total Assets | $42,438.00 | $40,000.00 |
| Current Liabilities | $8,736.00 | $8,000.00 |
| Long-term debt | $12,728.00 | $12,000.00 |
| Total Liabilities | $21,464.00 | $20,000.00 |
| Shareholder Equity | $20,974.00 | $20,000.00 |
| Liabilities and Equity | $42,438.00 | $40,000.00 |
| Income Statement | 2018 | 2017 |
|---|---|---|
| SALES | $11,000.00 | $10,000.00 |
| COGS | $4,400.00 | $4,000.00 |
| GROSS PROFIT | $6,600.00 | $6,000.00 |
| S&A | $1,100.00 | $1,000.00 |
| Depreciation | $550.00 | $500.00 |
| EBIT | $4,950.00 | $4,500.00 |
| INTEREST | $1,272.00 | $1,200.00 |
| EBT | $3,678.00 | $3,300.00 |
| TAXES (36.00%) | $1,324.08 | $1,188.00 |
| NET INCOME | $2,353.92 | $2,112.00 |
Going forward, analysts have forecasted the following free cash
flows: $2,600.00 in 2019, and $2,600.00 in 2020. After that point,
analysts expect free cash flows to grow at 3.00%. The firm has no
short-term debt or preferred stock, and there are 1,000 shares
outstanding. The firm's cost of capital is 10.00%.
You are trying to estimate the value of Doc McRuffins Incorporated. It is a rival firm to Ellie's Essentials, but not publicly traded. You do know that Doc McRuffins has an EBITDA of $4,750 for 2018. Using multiples, what is a rough estimate for the enterprise value of Doc McRuffins
Solutions
Expert Solution
| Valuation of Ellie's Essentials LLC | ||||
| Year | Free Cash Flows | P.V. Factor | Present Value ($ Million) | |
| Remarks | Cash Flow ($ ) | [@10%] | [Cash Flow*P.V. Factor] | |
| 2019 | 2600.00 | 0.9091 | 2363.66 | |
| 2020 | 2600.00 | 0.8264 | 2148.64 | |
| Continuing value at 2020 year end | As per working Note 1 | 38257.14 | 0.8264 | 31615.70 |
| Value of Firm at 2018 | 36128.00 | |||
| Valuation of Doc McRuffins | ||||
| Particulars | Amount ($) | |||
| EBIDTA of Ellie's Essentials LLC | 5500 | |||
| Value of Ellie's Essentials LLC | 36128 | |||
| Value to EBIDTA Multiple | [36128/5500] | 6.5687 | ||
| EBIDTA of Doc McRuffins | 4750.00 | |||
| Value of Doc McRuffins |
[EBIDTA*Value to EBIDTA] 4750*6.5687 |
31201.46 | ||
| Working Note 1 | |||
| Continuing value at the end of 2020 | |||
|
= Free Cash flow at end of 2021 WACC-Growth Rate |
|||
|
= 2600*1.03 10.00%-3.00% |
|||
|
= 2678 7.00% |
|||
| = $ 38257.1429 milion |
| Working Note 2 | |
| EBIDTA of Ellie's Essentials LLC | |
| Sales | 11000 |
| COGS | 4400 |
| Gross Profit | 6600 |
| S&A | 1100 |
| EBIDTA | 5500 |
jeff jeffy answered 2 years agoRelated Solutions
Consider recent financials for Ellie's Essentials LLC: Balance Sheet 2018 2017 Current Assets $11,438.00 $10,000.00 Net...
Consider recent financials for Ellie's Essentials LLC:
Balance Sheet
2018
2017
Current Assets
$11,438.00
$10,000.00
Net PPE
$31,000.00
$30,000.00
Total Assets
$42,438.00
$40,000.00
Current Liabilities
$8,736.00
$8,000.00
Long-term debt
$12,728.00
$12,000.00
Total Liabilities
$21,464.00
$20,000.00
Shareholder Equity
$20,974.00
$20,000.00
Liabilities and Equity
$42,438.00
$40,000.00
Income Statement
2018
2017
SALES
$11,000.00
$10,000.00
COGS
$4,400.00
$4,000.00
GROSS PROFIT
$6,600.00
$6,000.00
S&A
$1,100.00
$1,000.00
Depreciation
$550.00
$500.00
EBIT
$4,950.00
$4,500.00
INTEREST
$1,272.00
$1,200.00
EBT
$3,678.00
$3,300.00
TAXES (36.00%)
$1,324.08
$1,188.00
NET INCOME
$2,353.92...
Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 73,802 Assets 209,087...
Consider the following recent financials for XYZ
Corporation:
Income Statement
Balance Sheet
Sales
73,802
Assets
209,087
Debt
38,278
Costs
44,281
Equity
170,809
EBIT
29,521
Taxes @ 38%
11,218
Total
209,087
Total
209,087
Net Income
18,303
Assets and costs are proportional to sales. Debt and equity are
not. A dividend of $2,907 was paid, and the company wishes to
maintain a constant payout ratio. Next year’s sales are projected
to grow by 25%.
What is the pro-forma value for equity?...
Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 63,252 Assets 122,852...
Consider the following recent financials for XYZ
Corporation:
Income Statement
Balance Sheet
Sales
63,252
Assets
122,852
Debt
28,164
Costs
37,951
Equity
94,688
EBIT
25,301
Taxes @ 38%
9,614
Total
122,852
Total
122,852
Net Income
15,687
Assets and costs are proportional to sales. Debt and equity are
not. A dividend of $2,918 was paid, and the company wishes to
maintain a constant payout ratio. Next year’s sales are projected
to grow by 20%.
What is the pro-forma value for equity?...
Balance Sheet April 30 (in thousands of dollars) 2019 2018 2017 Assets: Current assets $ 1,700...
Balance Sheet
April 30
(in thousands of dollars)
2019
2018
2017
Assets:
Current assets
$ 1,700
$1,120
$1,544
Plant and equipment (net)
8,110
7,830
5,404
Other assets
1,004
695
772
Total assets
$10,814
$9,645
$7,720
Liabilities and Stockholders' Equity:
Current liabilities
$ 950
$ 880
$ 772
Long-term liabilities
2,023
1,591
1,544
Capital stock ($10 par)
4,600
4,600
3,000
Paid-in capital in excess of par
770
770
386
Retained earnings
2,471
1,804
2,018
Total liabilities and
stockholders' equity
$10,814
$9,645
$7,720
Income Statement...
Balance Sheet As at Dec 31 2017 and 2018 Carl’s Jr Restaurants 2017 2018 Current...
Balance Sheet
As at Dec 31 2017 and 2018
Carl’s Jr Restaurants
2017
2018
Current Assets:
Cash $210,000,000
$215,000,000
Accounts Receivables
355,000,000
310,000,000
Inventory
507,000,000 328,000,000
Total Current
Assets
$1,072,000,000 $853,000,000
Long-Term Assets:
Net Equipment, Furniture,
Fixtures
$6,085,000,000 $6,527,000,000
Total
Assets
$7,157,000,000 $7,380,000,000
Current Liabilities:
Accounts
Payable $207,000,000
$298,000,000
Notes
Payable
$1,715,000,000 $1,427,000,000
Total Current
Liabilities
$1,922,000,000 $1,725,000,000
Long-term
Liabilities
$1,987,000,000 $2,308,000,000
Owners’ Equity:
Common stock plus Capital Surplus
$1,000,000,000 $1,000,000,000
Retained
Earnings
2,248,000,000 ...
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...
BALANCE SHEET
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment. The firm has total
assets of $3 million and net plant and equipment equals $2.6
million. It has notes payable of $150,000, long-term debt of
$746,000, and total common equity of $1.55 million. The firm does
have accounts payable and accruals on its balance sheet. The firm
only finances with debt and common equity, so it has no preferred
stock on its...
Balance Sheet The assets of Dallas & Associates consist entirely of current assets and net plant...
Balance Sheet The assets of Dallas & Associates consist
entirely of current assets and net plant and equipment. The firm
has total assets of $2.5 million and net plant and equipment equals
$2 million. It has long-term debt of $750,000, and total common
equity of $1.5 million. The firm only finances with debt and common
equity, so it has no preferred stock on its balance sheet.
a. What is the amount of total liabilities and equity that
appears on the...
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...
BALANCE SHEET
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment. The firm has total
assets of $2.9 million and net plant and equipment equals $2.6
million. It has notes payable of $155,000, long-term debt of
$747,000, and total common equity of $1.55 million. The firm does
have accounts payable and accruals on its balance sheet. The firm
only finances with debt and common equity, so it has no preferred
stock on its...
Balance Sheet The assets of Dallas & Associates consist entirely of current assets and net plant...
Balance Sheet
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment. The firm has total
assets of $2.6 million and net plant and equipment equals $2.2
million. It has notes payable of $155,000, long-term debt of
$746,000, and total common equity of $1.45 million. The firm does
have accounts payable and accruals on its balance sheet. The firm
only finances with debt and common equity, so it has no preferred
stock on its...
BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...
BALANCE SHEET
The assets of Dallas & Associates consist entirely of
current assets and net plant and equipment. The firm has total
assets of $2.6 million and net plant and equipment equals $2.2
million. It has notes payable of $140,000, long-term debt of
$755,000, and total common equity of $1.45 million. The firm does
have accounts payable and accruals on its balance sheet. The firm
only finances with debt and common equity, so it has no preferred
stock on its...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What 2 things happen to the melting point of a solid when an impurity is present?
- How Can Hominin Evolution be characterized as " mosaic evolution" Use examples of species from the...
- Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of...
- Mobile and wireless devices are being increasingly used in the Business Administration and Management Industry. write...
- What are the options that might be considered in relation to introducing flexible work practices? What...
- Question 2 : Aggregate Scores: Write a program that opens 2 files, quiz.txt, and hw.txt. The...
- Define the term symbiosis specifically as it applies in a biological context. Compare and contrast parasitism,...
ADVERTISEMENT