CSH has EBITDA of $5 million. You feel that an appropriate EV/EBITDA ratio for CSH is 9.
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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 CSH’s stock price?
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Plan You can use the EVEBITDA ratio to estimate the enterprise value and then use Eq 104 to calcu...View the full answer
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