1. You are an analyst at investment bank G&S, and you are asked to evaluate the stocks of Surprise Corp. The following t

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1 You Are An Analyst At Investment Bank G S And You Are Asked To Evaluate The Stocks Of Surprise Corp The Following T 1 (527.65 KiB) Viewed 57 times

1. You are an analyst at investment bank G&S, and you are asked to evaluate the stocks of Surprise Corp. 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).