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 141 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
Excellent

daiying98

  • Member
  • Posts: 354
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

bio industry bio industry
How to find the average atomic mass of an element How to find the average atomic mass of an element
Food policy can drive the food industry Food policy can drive the food industry
Average Annual Growth Rates of Population by Country Group Average Annual Growth Rates of Population by Country Group
For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ... For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ...
Genomic and fossil evidence has been used to estimate the times of divergence of human and Neanderth Genomic and fossil evidence has been used to estimate the times of divergence of human and Neanderth
Video: DNA Sequences - Dideoxy Sequencing

For a complete list of videos, visit our video library