You are valuing an oil & gas company. Is price / reserves an appropriate multiple? Why or why not?

A company estimates that 0.1% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $200.If they offer a 2 year extended warranty for $18, what is the company’s expected value of each warranty sold? _______

Assume: Aldi’s current stock price is $50 and it has 300M shares outstanding Assume that Woodman’s made an offer for Aldi in 2021.  Woodman’s stock at that time traded at $90 per share.   Woodman’s had130M shares outstanding, debt of $7,000M and excess cash of $500M. Aldi’s LTM EBITDA is$1,663M, and its forward EBITDA is $1,728M. Aldi’s forward (2018E) EPS is $4.54, and Woodman’s is $8.41 Assume the deal happened Dec 30,2021.  Synergies are expected to be $200M.  Both companies have a WACC of 8% and a cost of equity of 10%. Analysis of precedent transactions shows that the median transaction EV/LTM EBITDA multiple for similar deals has been 12.5x.  If Woodman’s acquisition of Aldi resulted in an acquisition multiple  EV/LTM EBITDA multiple of 12.5x, how much of a premium (in percent) is Woodman’s paying per share of Aldi?  Enter answer to one decimal place.  So if you think answer is 12.24% then type “12.2”

After reading Alaska Air Group’s 10-K, you find the following table on p. 37 of the MD&A section:    In addition, you read the following: Lease Return Costs (p. 61 in Note 2) “Alaska removed 40 leased aircraft from operating service in 2020, and recorded an estimate of the expected future lease return costs for the aircraft of $209 million to Special Items – Impairment Charges….. In 2021, the Company recorded a net benefit of $1 million associated with changes to these estimates.” Workforce Restructuring (p. 61 in Note 2) “In 2020….Alaska recorded $220 million in wage expense to Special Items – restructuring charges…..Throughout 2021, the Company continued to refine and update capacity expectations and training schedules, which resulted in changes to anticipated leave lengths. As a result, Alaska recorded a net benefit of $10 million during the year ended December 31, 2021.”   Assuming the impairment benefit, restructuring benefit and payroll support wage offset benefit are all one-time items, what was Alaska Air Group’s EBITDA for the year ended December 31, 2021?

Calculate the magnitude of the angular momentum if an object’s moment of inertia is 50 kg·m2 and its angular velocity is 10 rad/s.

A company gives a greenshoe option to purchase its shares at a set price, 

 What is non-controlling interest? In 1 – 3 sentences, explain clearly how it arises and what it represents.

Question 7 – M&A

Using Autozone’s 10-K, the best definition for operating current liabilities used to calculate Autozone’s operating working capital is:

Which of the following are true about share repurchases?