Important General Instructions for Reporting Numerical Answers:
– Do not round intermediate calculations.
– Report your answers to the number of decimal places requested.
– Unless otherwise instructed, solve problems in the given units. IE: if given units are in $K, complete your computations in these units and, as applicable, report your answer in these units (without writing “$” or “K”).
– Do not report any numerical answer as a percent. IE: for example, write
0.324 instead of 32.4%.
– Report negative numbers with a leading minus sign, like this (for example):
Not like this: (23.451).
– Note that Canvas removes trailing insignificant figures. If you type, for example, 41.350, Canvas will remove the last decimal place and record your answer as 41.35 This is fine because 41.35 = 41.350.
– Assume time is measured in years unless otherwise stated.
KB Homes (KBH) builds and sells single family homes to first-time homebuyers. KBH’s Inventory consists of houses being constructed and completed, for-sale homes. Consider this additional information for the firm:
Shares outstanding: 2,000,000
Price per share $1.00
Latest Balance Sheet
|Other Current Assets||100,000|
|Total Current Liabilities||500,000|
|Long term debt||200,000|
As always for GAAP Balance Sheets, Inventory is measured at cost, not sale price. As an awesome analyst, you estimate that the market value (sale price) of KBH’s Inventory is $4,000,000. You also believe that the rest of KBH’s assets, as reported on the Balance sheet, are roughly equal to thier market values. Round your answers to zero decimal places.
What is your estimate for the intrinsic or true value of KBH to owners?
What does “Mr. Market” (as Warren Buffet says) believe is the value of KBH’s equity?
Based on your analysis, would purchasing shares of KBH probably be a good investment?
Answer yes or no, and provide one reason.
Plagiarism Free Papers
All our papers are original and written from scratch. We will email you a plagiarism report alongside your completed paper once done.
All papers are submitted ahead of time. We do this to allow you time to point out any area you would need revision on, and help you for free.
A title page preceeds all your paper content. Here, you put all your personal information and this we give out for free.
Without a reference/bibliography page, any academic paper is incomplete and doesnt qualify for grading. We also offer this for free.
Originality & Security
At Homework Valley, we take confidentiality seriously and all your personal information is stored safely and do not share it with third parties for any reasons whatsoever. Our work is original and we send plagiarism reports alongside every paper.
24/7 Customer Support
Our agents are online 24/7. Feel free to contact us through email or talk to our live agents.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
We work around the clock to see best customer experience.
Our prices are pocket friendly and you can do partial payments. When that is not enough, we have a free enquiry service.
Admission help & Client-Writer Contact
When you need to elaborate something further to your writer, we provide that button.
We take deadlines seriously and our papers are submitted ahead of time. We are happy to assist you in case of any adjustments needed.
Your feedback, good or bad is of great concern to us and we take it very seriously. We are, therefore, constantly adjusting our policies to ensure best customer/writer experience.