Assume a lender, who also believes the value of firms should be from profitability that take all expenses except tax int

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Assume A Lender Who Also Believes The Value Of Firms Should Be From Profitability That Take All Expenses Except Tax Int 1 (60.07 KiB) Viewed 41 times

Assume a lender, who also believes the value of firms should be from profitability that take all expenses except tax into account, which statement is correct? Assume the market is efficient what should he do? (Hint: Again, all numbers should be based on forward looking lenders would want to use NET proht as it is most conservative. Net profit is sales minus all expenses, but in this case net profit is all negative for T-Mobile and AT&T. Thus, we need to use forecasted sales divided by all of the forecasted expenses.) Use below information (in thousands) to serwer the questions. Forecasted numbers are the number that are based on analy's forecasts. That is, T-Mobile's forecasted revenue of $600,000 is the revenue analysts forecasted in 2019 T-Mobile will have in 2020 T-Mobile 2019 AT&T 2019 650,000 30% 350,000 300,000 240,000 forecasted number 600,000 25% 400,500 199,500 300,000 2,500,000 125% 2,900,000 400.000 1,000,000 forecasted number 4,500,000 70% 3,000,505 1,499.495 1,500,000 Sales reven Sales growth Cost of goods sold Grow profit Research and development expense R&D growth Selling general and administrative expense Interest expense Net profits before taxes Net profits after taxes Stock price per share Number of employees in thousands 110% 110,000 150% 150,000 150% 1,200,000 150% 1,500,000 35,000 -85,000 -65,000 $85 30,000 -280,500 -200,000 26,000 2,626,000 -1,508,178 $38 9 20,000 -1,520,505 -939,221 6 15 The stock price of AT&T using T-Mobile as a comparable is $93, suggesting AT&T is overpriced now and we should sell O The stock price of T-Mobile using AT&T as a comparable is $50, suggesting T-Mobile is overpriced now and we