You are an analyst at a firm that buys private companies, improves their operating
performance and sells them for a profit. Your boss has asked you to estimate the fair
market value of the Macchina Utensile S.p.A. The Macchina Utensile’s income
statement from the fiscal year that ended this past December is:
Cost of goods sold 652
Gross profit €343
Selling, general, & administrative expenses 135
Operating profit (EBIT) €208
Interest expense 48
Earnings before taxes €160
Net income € 96
All values are in millions of euros. Depreciation and amortisation expenses last year
were €42 million and the company has €533 million of debt outstanding.
Milan Ingeneria S.p.A. is a public company with business operations that are virtually
identical to those at Macchina Utensile. The income statement for this company,
Milan Ingeneria for the fiscal year that ended this past December is as follows:
Cost of goods sold 1,168
Gross profit € 596
Selling, general, & administrative expenses 211
Operating profit (EBIT) € 385
Interest expense 12
Earnings before taxes € 373
Net income € 226All values are in millions. Milan Ingeneria had depreciation and amortisation
expenses of €71 million last year and 200 million shares and €600 million of debt
outstanding as of the end of the year. Its shares are currently trading at €12.25.
a. Using the P/E multiple, what is the value of Macchina Utensile shares? What is
the total value of Macchina Utensile company?
b. Using the enterprise value/EBITDA multiple, what is the total value of Macchina
Utensile S.p.A.? What is the value of Macchina Utensile’shares?
c. Which of the above multiple analyses do you believe is more appropriate?
a. Choose the correct equation for the tangent plane to the surface 2z+9 = 9 ze3 9 cos(2) at the point P (8,0,0). Click for List 9x - 72 = 0 b. urface at the point P (8,0...May 14 2021
Gerard, an events promoter and coordinator, promises to stage a concert for the benefit of Kids Care, a charitable organization dedicated to helping disadvantaged youth. ...May 29 2018
U.S. companies increasingly provide some form of child care support to their employees. Discuss. 96.What factors should be considered when thinking about cost control...Jan 10 2020
HRM 500 week 11 DQAssess how your own theories of consumer behavior have matured or changed since the beginning of this course.May 08 2020
During September, 40,000 units were produced. The standard quantity of material allowed per unit was 5 kg at a standard cost of $2.50 per kilogram. Suppose the company ha...Mar 13 2020
What is the energy of a photon of yellow light whose wavelength is 589 nm?A)3.37 ? 10–19 JD)5.09 ? 105 JB)3.37 ? 10–10 JE)3.38 ? 10–28 JC)1.77 ? 102 J12. A ...Jan 24 2020
Kepler Boilers Limited is a private sector manufacturing unit engaged in the production of boilers of medium size. Mr Ravi Prasad founded this company with two other fiel...May 12 2020
On January 1, 2012, Bonita Industries issued $18000000 of 10% ten-year bonds at 102. The bonds are callable at the option of Bonita at 104. Bonita has recorded amortizati...Aug 12 2020
What are the main challenges of global strategy?May 18 2018
Scooby Corporation issued $200,000 of five-year 6% bonds at face value on August 1, 2013. Interest is paid annually on July 31. a) Prepare Scooby's journal entry t...Jan 25 2020