Question
ABC Corp. expects to have EBITDA of $ 300 million. XYZ also has 100 shares of common stock outstanding and net debt (net debt =
ABC Corp. expects to have EBITDA of $ 300 million. XYZ also has 100 shares of common stock outstanding and net debt (net debt = debt - cash) of $ 200. The average EV/EBITDA ratio of similar companies is 10. Given this information what do you estimate is a fair price for a share of ABC common stock? Round your final answer to two decimals.
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National Finance A Chinese Perspective
Authors: Yunxian Chen, Heming Yong
1st Edition
9813360917, 978-9813360914
