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ABC and DEF are firms in the waste management business. Their EV / EBITDA ratios, using estimates for next year s EBITDA, are 2 3

ABC and DEF are firms in the waste management business. Their EV/EBITDA ratios,
using estimates for next years EBITDA, are 23 and 25, respectively. XYZ a comparable
company has estimated EBITDA of $300 million next year, Debt of $200M, and cash of
$10 million, and 100 million shares outstanding. What is value of one share of XYZ?
a. $72.4
b. $70.1
c. $69.9
d. $73.9

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