Question
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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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 ...
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Step: 2
Step: 3
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
