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Author Question: The Highlight Company has a book value of $56.50 per share, and is currently trading at a price of ... (Read 191 times)

Triley39

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on: Mar 29, 2022

Question 1

NRBG Inc. generated EBITDA of $181,818,182 million this year and that is expected to grow by 10% over the coming year.  NRBG has 40 million shares outstanding; similar companies trade around 9 times cash flow.  What are NRBG's expected cash flow and price per share?
◦ $4.55, $40.91
◦ $5.00, $45.00
◦ $5.00, $40.91
◦ $4.55, $45.00

Question 2

The Highlight Company has a book value of $56.50 per share, and is currently trading at a price of $59.00 per share. You are interested in investing in Highlight, and have just used a present-value based stock valuation model to calculate a present (intrinsic) value of $55.00 per share for Highlight's stock. Assuming that your calculations are correct you should
◦ buy the stock, because the current market price per share is higher than the present value.
◦ buy the stock, because the book value per share is greater than the present value.
◦ not buy the stock, because the present value is less than the market price per share.
◦ buy the stock, because the book value and the current trading price are very close to one another in value.
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
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Marked as best answer by Triley39 on Mar 29, 2022

Talvinder.Singh

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Reply #1 on: Mar 29, 2022
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.
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Triley39

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Reply 2 on: Mar 29, 2022
Thanks for the timely response, appreciate it

dreamfighter72

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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