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

Author Question: The Highlight Company has a book value of $56.50 per share, and is currently trading at a price of ... (Read 187 times)

Triley39

  • Full Member
  • ***
  • Posts: 145
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Triley39 on Mar 29, 2022

Talvinder.Singh

  • Full Member
  • ***
  • Posts: 169
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.
Answer Preview
Only 29% of students answer this correctly


Triley39

  • Member
  • Posts: 145
Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review

milbourne11

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

William Morris, Page from a specimen book with sample proof letters, Kelmscott Press. William Morris, Page from a specimen book with sample proof letters, Kelmscott Press.
An example of a manual appointment book. An example of a manual appointment book.
Two woodcuts from Darwin’s 1872 book, The Expression of Emotions in Man and Animals, that he used ... Two woodcuts from Darwin’s 1872 book, The Expression of Emotions in Man and Animals, that he used ...
Share of Human Capital in Wages in Advanced Countries Share of Human Capital in Wages in Advanced Countries
An organizational specialist is hired as a consultant to a company planning to open a coffee ... An organizational specialist is hired as a consultant to a company planning to open a coffee ...
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
Video: Ultrasound of a Fetus (Sonogram)

For a complete list of videos, visit our video library