Question
1. You are given the following information: Stockholders' equity as reported on the firms balance sheet = $6 billion, price/earnings ratio = 9, common shares
1. You are given the following information: Stockholders' equity as reported on the firms balance sheet = $6 billion, price/earnings ratio = 9, common shares outstanding = 14 million, and market/book ratio = 2.2. The firm's market value of total debt is $5 billion; the firm has cash and equivalents totaling $310 million, and the firm's EBITDA equals $2 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent.
2. What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started