The following table provides summary information for Surprise
Corp. and its two close competitors, Bellona, Inc. and Suffolk
Co.
Surprise
Bellona
Suffolk
Market Value of Firm
$876,369
$995,748
Market Value of Equity
512,324
913,198
NOPAT
683,741
150,587
422,515
Net income
508,043
108,807
341,022
Net Nonoperating Obligations (NNO)
195,407
364,045
82,550
# of shares outstanding
8,778.5
446.3
635.2
Part A. Using the average Value/NOPAT
multiples of the two peers, what is your estimated Surprise Corp’s
stock price per share?
Part B. Using the average Market Value of
Equity /Net Income multiples of the two competitors, what is your
estimated Surprise Corp’s stock price per share?
Part C. Do you think it is reasonable to
use the average multiples of Bellona and Suffolk to evaluate
Surprise Corp? Briefly explain your answer (no calculation
required).
The following table provides summary information for Surprise Corp. and its two close competitors, Bellona, Inc. and Suf
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