going concern value aggie motors is a chain of used car dealerships that has publicl 606930
Going-concern value: Aggie Motors is a chain of used car dealerships that has publicly traded stock. Using the adjusted book value approach, you have estimated the value of Aggie Motors to be $45,646,000. The company has $40.5 million of debt outstanding. Its stock price is $5.5 per share, and there are 1,378,000 shares outstanding. What is the going concern value of Aggie Motors?
Johnson”s income statement from the fiscal year that ended this past December is:
Revenue |
$995 |
Cost of goods sold |
652 |
Gross profit |
$343 |
Selling, general, and administrative expenses |
135 |
Operating profit (EBIT) |
$208 |
Interest expense |
48 |
Earnings before taxes |
$160 |
Taxes |
64 |
Net income |
$ 96 |
All dollar values are in millions. Depreciation and amortization expenses last year were $42 million, and the company has $533 million of debt outstanding.