After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation
Question:
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios (see MyFinanceLab for the data in Excel format):
EJH Enterprises has EPS of $2, EBITDA of $300 million, $30 million in cash, $40 million in debt, and 100 million shares outstanding. What range of prices is consistent with both sets ofmultiples?
Transcribed Image Text:
Comp 1 12 19 Comp 3 12.5 20 Comp 4 10 17 Comp 2 EVIEBITDA P/E 18
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (6 reviews)
EPS 200 EBITDA 30000000 Cash 3000000 ...View the full answer
Answered By
ANDREW KIPRUTO
Academic Writing Expert
I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments.
I can help you in the following areas:
Networking
- Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM
- Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP
- Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more
- Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo
Always available for new projects! Contact me for any inquiries
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
The long-run downward trend in commodity prices is consistent with the idea that: a. We are quickly running out of resources. b. Resource demands have been increasing faster than resource supplies....
-
Both EBITDA to enterprise value and P/ E ratios can be linked to interest rates through the discount rate used in discounted cash flow valuation. Holding all else equal, when discount rates are...
-
After researching several stocks online, you notice that they have continually fluctuated in price. What might be the reason for this? Is a higher-priced stock a better in-vestment than a...
-
Given the following marginal utility schedule for good X and good Y for an individual A, given that the price of X and the price of Y are both $10, and that the individual spends all his income of...
-
WCM Builders enters into a contract to build a shopping mall in 2016 for $6,000,000. Completion of the mall is expected to take 2 years and cost WCM $3,600,000. Upon signing the contract, WCM...
-
Given that A, B, and C are three independent events, find their joint probability for the following. a. P (A) = .81 and P (B | A) = .36 b. P (B) = .02 and P (A | B) = .05
-
The 19th term of the Fibonacci sequence is 4,181 and the 20 th term is 6,765 . What is the 21 st term of the sequence?
-
Don Garlits is a landscaper. He is considering the purchase of a new commercial lawn mower, either, the Atlas or the Zippy. The minimum attractive rate of return is 8%, and the table provides all the...
-
M 4 - 2 9 . Classifying Statement of Cash Flows Components and Determining Their Effects The following table presents selected items from a recent statement of cash flows of Nordstrom, Inc. a . For...
-
For each of the following systems, give two examples of how a mechanical engineer would be involved in its analysis. (a) Jet engine for a commercial airliner (b) Rover robot for planetary exploration...
-
CSH has EBITDA of $5 million. You feel that an appropriate EV/EBITDA ratio for CSH is 9. CSH has $10 million in debt, $2 million in cash, and 800,000 shares outstanding. What is your estimate of CSHs...
-
Suppose that in May 2010, Nike had EPS of $3.51 and a book value of equity of $18.92 per share. a. Using the average P/E multiple in Table 10.1, estimate Nike's share price. b. What range of share...
-
Perform the indicated operations and attach the correct units to your answers. 60s 7.25m(0.3048m) (mm) min 2
-
To what extent does ASOS sell through an integrated distribution channel system?
-
The quantity of audit working papers compiled on an engagement would most be affected by: a. Management's integrity. b. Control risk. c. A new engagement. d. The auditor's experience.
-
Discuss how firms can attract and retain new customers.
-
What are the disadvantages of the present salary-only compensation plan? What advice would you give to Booth about devising and implementing a new system of compensation for the sales force?
-
In 2003 and 2004, an auditor found that approximately 4 percent of processed sales invoices were not mathematically accurate. In late 2004, the client implemented a control requiring that all sales...
-
For the common-gate circuit in Figure P4.48, the NMOS transistor parameters are: \(V_{T N}=1 \mathrm{~V}, K_{n}=3 \mathrm{~mA} / \mathrm{V}^{2}\), and \(\lambda=0\). (a) Determine \(I_{D Q}\) and...
-
1. Advertising for eyeglasses _________ (increases/decreases) the price of eyeglasses because advertising promotes _________. 2. An advertisement that succeeds in getting consumers to try the product...
-
Express a volume of 322 mL in units of: (a) Liters (b) cm 3 (c) m 3 Strategy A flow diagram helps explain the process. Quantities in the flow diagrams are in colored boxes, and processes appear above...
-
How can you interpret the difference between the cost of capital and the IRR?
-
How do you apply the payback rule?
-
Under what conditions will the IRR rule lead to the same decision as the NPV rule?
-
Blossom Corporation's comparative balance sheets are presented below. - / 1 Blossom CorporationComparative Balance SheetsDecember 3 1 2 0 2 7 2 0 2 6 Cash$ 1 5 , 0 0 0 $ 1 0 , 2 0 0 Accounts...
-
As at December 3 1 , 2 0 2 3 , Oriole Corporation is having its financial statements audited for the first time ever. The auditor has found ( a ) Prepare the necessary journal entries to record each...
-
If a director believes that they may have a possible conflict of interest with the company, what would not be an option for them? Choose the best answer. Question 2 Answer a . To seek to use Section...
Study smarter with the SolutionInn App