Pindi Yulinar Rosita

008201905023

Hewlett-Packard Co. :
Price/Sales 1,37
P/E 15,93
P/B 3,00
Lenovo
Price/Sales 0,44
P/E 39,63
P/B 5,63
Now apply the multiples to Dell :
Average
  Multiples Dell's Dell's
for
  Comparable Number (million) Valuation (million)
Sales 0,91 $ 61.133 $ 55.631
Earnings 27,78 $ 2.947 $ 81.868
Book Value 4,32 $ 3.735 $ 16.135
Average of valuations     $ 51.211
The estimated value per share = $ 51.211 / 2.060 = $ 24.86
Difficulties :
1. The calculation assumes the market prices for the "comps" are efficient
2. The "comparables" are not exactly like Dell. Because, They have different aspects in
operations.
3. Not sure how to weight the three valuation based on sales, earnings and book values.
 Answer :
Present value of dividends = $ 2 / 0,12 = $ 16,67
Value Added = $ 19 - $ 16,67 = $2,33

XWhat would be the value added from the acquisition of the player?

9% ROI per
Answer : year
Year  
1 0,917
2 0,842
3 0,772
4 0,708
5 0,649
Annuity
$ 3,888
factor
Present value of Cash Inflows = $ 3,5 X $3,888 = $ 13,608 million

Present value of annual pay for 5 years = $ 2,5 X $ 3,888 = $ 9,720 million

Present value of Cash outflows =$ 2 + $ 9,72 = $ 11,72 million

NPV = $ 1,888 million

Answer :

Market price of equity = 80 × $7 = $ 560 million

Market value of debt = $ 140 million

Market value of enterprise = $ 700 million

Book value of shareholders’ equity = $250 - 140 = $110million

a. P/B = 560/110 = 5,09

b. Unlevered P/S = 700/560 = 1,25

c. Enterprise P/B = 700/250 = 2,8

Answer :

Present value of net cash receipts 1.1 million for 5 years $ 3.965  
at 12% (annuity factor is 3,6048)    
Present value of $ 12 million "terminal payoff" $ 6.809  
at end of 5 years (present value factor is 0,5674)    
Value of building     $ 10.774  
Answer :

Price per share before repurchase = $ 4.004 / $ 179 = $22,37 million

Total value of the equity before repurchase = $ 22,37 × $ 2.239 = $ 50.086 million

Total value of the equity after repurchase = $ 50.086 − $ 4.004 = $46.082 million

Shares outstanding after repurchase = $ 2.2390 − $ 179 = $ 2.060 million

Price per share after repurchase = $ 46.082 / $ 2.060 = $ 22,37