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 149 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 :)

atrochim

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

On average, the ratio of carbon to nitrogen is much higher in terrestrial plants than in other major On average, the ratio of carbon to nitrogen is much higher in terrestrial plants than in other major
Average optimal blood pressure for age Average optimal blood pressure for age
Average national IQs according to IQ and Global Inequality Average national IQs according to IQ and Global Inequality
The impact of industry and manufacturing on our life The impact of industry and manufacturing on our life
Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product
The Oil Industry: BOEM iron triangle The Oil Industry: BOEM iron triangle
Video: How does an animal choose what food to eat?

For a complete list of videos, visit our video library