Fairview, Inc., is an ocean transport company with EBITDA of $50 million, cash of $20 million, debt

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Fairview, Inc., is an ocean transport company with EBITDA of $50 million, cash of $20 million, debt of

$100 million, and 10 million shares outstanding. The ocean transport industry as a whole has an average EV/EBITDA ratio of 8.5. What is one estimate of Fairview’s enterprise value? What is a corresponding estimate of its stock price?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 27, 2024 03:07 AM

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Fairview, Inc., is an ocean transport company with EBITDA of $50 million, cash of $20 million, debt

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PLAN To estimate Fairviews enterprise value we multiply its EBITDA by the average EVEBITDA ratio of ...View the full answer

Fundamentals Of Corporate Finance

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