Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: ( See picture of table attached )

After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: (See picture of table attached). EJH Enterprises has EPS of $2.00, EBITDA of $300million,$26 million in cash, $41 million in debt, and 103 million shares outstanding. What range of prices is consistent with both sets of multiples? The first answer i have which is: The lowest price within both ranges, the P/E and the EV/EBITDA ranges, is $34.00(Rounded to the nearest cent.) The second answer I don't have and the question is: The highest price within both ranges, the P/E and the EV/EBITDA ranges, is $ _____(Round to the nearest cent).
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions