FREE Trial S
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company expects EPS to be $6.49 next year. The industry average P/E ratio is 16.35 and Enterprise multiple is 7.32. The EBITDA for the

image text in transcribed
A company expects EPS to be $6.49 next year. The industry average P/E ratio is 16.35 and Enterprise multiple is 7.32. The EBITDA for the company is $21.35 million. What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Deals From Hell M And A Lessons That Rise Above The Ashes

Deals From Hell M And A Lessons That Rise Above The Ashes

Authors: Robert F. Bruner, Arthur Levitt

1st Edition

ISBN: 0470452595, 978-0470452592

More Books

Students also viewed these Finance questions

Question

★★★★★
Refer to Problem 3-56B. 1. Use the For You eTravel Inc. data in problem P3-56B to prepare the company's classified balance sheet at December 31, 2017. Show captions for total assets, total...

Answered: 1 week ago

Question

★★★★★
#12 A company has an EPS of $1.65, a book value per share of $17.49, and a market/book ratio of 3.1. What is its P/E ratio? Do not round intermediate calculations. Round your answer to two decimal...

Answered: 1 week ago

Question

★★★★★
6. The US Department of Agriculture issues regulations regarding the labeling of foods containing genetically modified organisms (GMOs). The regulations give manufacturers several options for...

Answered: 1 week ago

Question

★★★★★
Chicago Company had the following stock outstanding and retained earnings at December 31, 2011: Common stock (par $8; outstanding, 35,000 shares) $280,000 Preferred stock, 10% (par $15; outstanding,...

Answered: 1 week ago

Question

★★★★★
A company expects EPS to be $6.49 next year. The industry average P/E ratio is 16.35 and Enterprise multiple is 7.32. The EBITDA for the company is $21.35 million. What is an estimate of the stock...

Answered: 1 week ago

Question

★★★★★
A bank makes a $30,000 fixed rate 15 year loan. The bank funds the loan with $25,000 5 year CD and $5000 of equity. What is the GAP10 (10 for 10 years) on this loan? $30,000 $25,000 -$30,000 -$25,000...

Answered: 1 week ago

Question

★★★★★
A baseball catcher is performing a stunt for a television commercial. He will catch a baseball with mass m = 173 g, dropped from rest at a height y = 62 m above his glove. The glove brings the ball...

Answered: 1 week ago

Question

★★★★★
The following information comes from the records of Magno Co. for the current period: Actual costs and quantities: Direct materials used Direct labor hours used 38,000 feet @ $6.20 per foot 50,660...

Answered: 1 week ago

Question

★★★★★
Prepare a second management report that identifies three implementation issues that Ooni must address if it is to implement your Part 1 recommendations effectively. This report should draw on...

Answered: 1 week ago

Question

★★★★★
What is the difference between FIFO and LIFO? B). A small refrigeration shop stocks up on electric motors from a catalog supplier located in the Midwest. The price of the motors varies depending on...

Answered: 1 week ago

Question

★★★★★
Explain what "Value-Added Tax" (VAT) means. (2) Explain when (in what circumstances) and why a VAT is likely to be used. (3) Give one example of a VAT, and explain the process through which the VAT...

Answered: 1 week ago

Previous QuestionNext Question