Business, 25.10.2021 21:50 donald1255

LAFCO Industries believes that its two primary product lines, automotive and commercial aircraft valves, are rapidly becoming obsolete. Its free cash flow is rapidly diminishing as it loses market share to new firms entering its industry. LAFCO has $200 million in debt outstanding. Senior management expects the automotive and commercial aircraft valve product lines to generate $25 million and $15 million, respectively, in earnings before interest, taxes, depreciation, and amortization next year. Senior management also believes that they will not be able to upgrade these product lines due to declining cash flow and excessive current leverage. A competitor to its automotive valve business last year sold for 10 times EBITDA. Moreover, a company that is similar to its commercial aircraft valve product line sold last month for 12 times EBITDA. Estimate LAFCOâ€™s breakup value before taxes.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 15:40, AM28

Nikolas works in a shoe store as a salesperson. a teenage boy comes in looking for comfortable sports shoes because he is going on a hike. he tells nikolas he wants shoes that have velcro straps. nikolas shows him a wide variety of velcro-strapped shoes, but the customer rejects them because they don't feel comfortable. he asks for sports shoes with laces instead. nikolas once again shows him a wide variety. the boy is once again not satisfied and asks to see the velcro-strapped shoes again. nikolas is irritated but doesn't show his annoyance. what customer service skill is nikolas showing? nikolas is a. meekness b. patience c. persistence

Answers: 1

continue

Business, 22.06.2019 05:10, lorrainetakai1738

Suppose that the free states of eldricia, a small nation, has consumption, investment, government purchases, imports, and exports as follows. consumption $140 investment $50 government purchases $45 imports $30 exports $15 calculate the free states of eldricia's gdp

Answers: 2

continue

Business, 22.06.2019 09:30, j1theking18

Stock market crashes happen when the value of most of the stocks in the stock market increase at the same time. question 10 options: true false

Answers: 1

continue

Business, 22.06.2019 10:10, cuthbertson157

conquest, inc. produces a special kind of light-weight, recreational vehicle that has a unique design. it allows the company to follow a cost-plus pricing strategy. it has $9,000,000 of average assets, and the desired profit is a 10% return on assets. assume all products produced are sold. additional data are as follows: sales volume 1000 units per year; variable costs $1000 per unit; fixed costs $4,000,000 per year; using the cost-plus pricing approach, what should be the sales price per unit?

Answers: 2

continue

You know the right answer?

LAFCO Industries believes that its two primary product lines, automotive and commercial aircraft val...