Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Apple's most recent year Sales, EBIT, and Depreciation Expenses were $600 million, $100 million, and $25 million respectively. Its market value of debt is $400
Apple's most recent year Sales, EBIT, and Depreciation Expenses were $600 million, $100 million, and $25 million respectively. Its market value of debt is $400 million and there are 10 million shares outstanding. The Industry Enterprise Value/EBITDA multiple is 10. What is the estimated stock price of Apple on the basis of the Enterprise Value/EBITDA comparable valuation method?
Step by Step Solution
★★★★★
3.31 Rating (163 Votes )
There are 3 Steps involved in it
Step: 1
For the given information EBITDA EBIT Depreciation 125 million EV ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
