A certain virus infects one in every 400 people. A test used…
A certain virus infects one in every 400 people. A test used to detect the virus in a person is positive 85% of the time if the person has the virus and 5% of the time if the person does not have the virus. (This 5% result is called a false positive.) Let A be the event “the person is infected” and B be the event “the person tests positive”. Find the probability that a person has the virus given that they have tested positive, i.e. find P(A|B). _______ Find the probability that a person does not have the virus given that they test negative, i.e. find P(A’|B’). _______
Read DetailsA company estimates that 0.1% of their products will fail af…
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? _______
Read DetailsAssume: Aldi’s current stock price is $50 and it has 300M sh…
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”
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