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Problem:

We know the following about Mikhasev. Total assets are $100m, D is $30m, E is $70m, cash is $10m and the # of shares is 1m. We estimate that the market value of equity is 2 times the book value of it. Finally, a fire sale of the firm would bring 60% of the value to the company.

Required:

Compute the book value, liquidation value, replacement value and enterprise value per share of Mikhasev.

Note: Please show how to work it out.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91162249

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