Business, 22.04.2020 03:22 dilaydi1212

Harrison Holdings, Inc. (HHI) is publicly traded, with a current share price of $ 30 per share. HHI has 25 million shares outstanding, as well as $ 66 million in debt. The founder of HHI, Harry Harrison, made his fortune in the fast food business. He sold off part of his fast food empire, and purchased a professional hockey team. HHI's only assets are the hockey team, together with 50 % of the outstanding shares of Harry's Hotdogs restaurant chain. Harry's Hotdogs (HDG) has a market capitalization of $ 843 million, and an enterprise value of $ 1.09 billion. After a little research, you find that the average asset beta of other fast food restaurant chains is 0.74. You also find that the debt of HHI and HDG is highly rated, and so you decide to estimate the beta of both firms' debt as zero. Finally, you do a regression analysis on HHI's historical stock returns in comparison to the S&P 500, and estimate an equity beta of 1.36. Given this information, estimate the beta of HHI's investment in the hockey team.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 06:30

Selected data for stick’s design are given as of december 31, year 1 and year 2 (rounded to the nearest hundredth). year 2 year 1 net credit sales $25,000 $30,000 cost of goods sold 16,000 18,000 net income 2,000 2,800 cash 5,000 900 accounts receivable 3,000 2,000 inventory 2,000 3,600 current liabilities 6,000 5,000 compute the following: 1. current ratio for year 2 2. acid-test ratio for year 2 3. accounts receivable turnover for year 2 4. average collection period for year 2 5. inventory turnover for year 2

Answers: 2

Answer

Business, 22.06.2019 20:30

Caleb construction (cc) incurs supervisor salaries expense in the construction of homes. if cc manufactures 100 homes in a year, fixed supervisor salaries will be $400,000. with the current construction supervisors, cc's productive capacity is 150 homes in a year. however, if cc is contracts to build more than 150 homes per year, it will need to hire additional supervisors, which are hired as full-time rather than temporary employees. cc's productive capacity would then become 200 homes per year, and salaries expense would increase to $470,000. how would cc’s salaries expense be properly classified? fixed variable mixed stepped curvilinear

Answers: 3

Answer

Business, 22.06.2019 22:50

What is the difference between the contractual interest rate and the market interest rate?

Answers: 1

Answer

Business, 22.06.2019 23:50

Harris fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. at the beginning of the year, it estimated that 34,000 direct labor-hours would be required for the period’s estimated level of production. the company also estimated $599,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. harris's actual manufacturing overhead for the year was $768,234 and its actual total direct labor was 34,500 hours.required: compute the company's predetermined overhead rate for the year. (round your answer to 2 decimal places.)

Answers: 2

Answer

You know the right answer?

Harrison Holdings, Inc. (HHI) is publicly traded, with a current share price of $ 30 per share. HHI...

Questions