This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The industry average P/E for the athletics and apparel industry is 18.8. Estimate the fair value of ... (Read 148 times)

Collmarie

  • Hero Member
  • *****
  • Posts: 569
on: Apr 25, 2021

Question 1

Silicone Systems Inc. shares are trading for $500. Analysts expect Silicone to generate net income of $41.7 billion. Silicone has 900 million shares outstanding. The average P/E ratio of Silicone's competitors is 18. What is the fair price for a share of Silicone Systems?
◦ $463
◦ $500
◦ $751
◦ $834

Question 2

The industry average P/E for the athletics and apparel industry is 18.8. Estimate the fair value of Nike's shares based on the industry average multiple and the data supplied in the table, below.

Price$65
EPS$3
Debt$545M
Equity$9,087M
Cash$3,630M
EBITDA$2,770M
Shares487M

◦ $11.43
◦ $56.40
◦ $65.00
◦ $68.00
◦ $87.50
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Collmarie on Apr 25, 2021

Sweetkitty24130

  • Sr. Member
  • ****
  • Posts: 291
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 29% of students answer this correctly


Collmarie

  • Member
  • Posts: 569
Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

gcook

  • Member
  • Posts: 343
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

bio industry bio industry
Although average brain size increases gradually though time in H. erectus, individuals with small br Although average brain size increases gradually though time in H. erectus, individuals with small br
How to find the average value of a function (Part 2) How to find the average value of a function (Part 2)
Food policy can drive the food industry Food policy can drive the food industry
Average Years of Schooling versus GDP per Capita Average Years of Schooling versus GDP per Capita
In 2000, the average charge of tax preparation was 95 . Assuming a normal distribution and a ... In 2000, the average charge of tax preparation was 95 . Assuming a normal distribution and a ...
Video: Stroke volume

For a complete list of videos, visit our video library