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5) A company has 200mm of debt, 50mm of cash, 25mm shares of stock trading at $10. It has operating income (EBIT) of 40mm and

5) A company has 200mm of debt, 50mm of cash, 25mm shares of stock trading at

$10.

It has operating income (EBIT) of 40mm and D&A of 10mm. What is EV/EBITDA

and debt/EBITDA?

6) Ligand Pharmaceuticals (LGND) has a P/E ratio of 45 while Pfizer (PFE) has a P/E

ratio of 14.5.

Ligand

Pfizer

Based on the above financials, why are the P/E ratios so different?

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5 To calculate EVEBITDA and DebtEBITDA we need the following information Debt 200mm Cash 50mm Shares Outstanding 25mm Stock Price 10 EBIT 40mm DA 10mm ... blur-text-image

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