Question
A company's capital structure consists of 2 million common shares with a current price of $20 per share and a single bond issue with a
A company's capital structure consists of 2 million common shares with a current price of $20 per share and a single bond issue with a face value of $25 million trading at 95. Calculate the company's enterprise value and estimate its EBITDA if an appropriate EBITDA Multiple applicable to the company is 5. What % of the company's enterprise value is represented by the bond issue?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
