let the d=5! please dont cope and past other question on chegg is wrong thanks...

50.1K

Verified Solution

Question

Finance

image

let the d=5! please dont cope and past other question on chegg is wrong thanks 4. SOMA Corp. is contemplating an acquisition of ITF Co. and wants to determine an appropriate value to pay for ITF's equity using comparable transactions analysis. It has identified three recent comparable transactions and has compiled the following information (all values in this problem are in billions): Total Paid Book Value - Target Transaction A $47.1 $15.7 Transaction B $(28 + D) $12.8 Transaction $15.2 $6.6 LTM Net Income - Target LTM Sales - Target $2.1 $34.2 $2.3 $46.4 $2.0 $40.6 a. For each of the transactions, calculate the following ratios and the average ratio across transactions: Total Paid/Book; Total Paid/Net Income; and Total Paid/Sales. b. Suppose that ITF has a Book Value of $19.0, LTM Net Income of $2.9, and LTM Sales of $63.0. Calculate the implied value of equity of ITF using each of the ratios from (a), and provide a recommended price for SOMA to pay

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students