Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Below is information on Public Company and Zeta Company. They are in the same industry. Public Company Category Value Stock Price $20.00 Per share Shares
Below is information on Public Company and Zeta Company. They are in the same industry.
Public Company
| Category | Value |
|---|---|
| Stock Price | $20.00 Per share |
| Shares Outstanding | 5 million |
| Debt | $9 million |
| EBITDA | $8 million |
| Net Income | $3 million |
Zeta Company
| Category | Value |
|---|---|
| Debt | $2 million |
| EBITDA | $1.5 million |
| Debt | $.60 million |
Using the format on Page 458 of the text to calculate the following:
- Earnings per share for Public Company
- Price earnings ratio for Public Company
- Enterprise value for Public Company
- Calculate the value of equity for Zeta
- Compute the market value of Zeta
- Compute the Enterprise value of Zeta
- Compute the Enterprise/EBITDA value for Zeta
- What is the range of the value of Zeta?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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
Detecting Accounting Fraud Before Its Too Late
Authors: Oriol Amat
1st Edition
1119566843, 9781119566847
