Question
Bootstrap Corp. has yearly sales of $28.5 million and costs of $12.9 million. The companys balance sheet shows debt of $54.5 million and cash of
Bootstrap Corp. has yearly sales of $28.5 million and costs of $12.9 million. The companys balance sheet shows debt of $54.5 million and cash of $38.5 million. There are 1,960,000 shares outstanding and the industry EV/EBITDA multiple is 8. a. What is the companys enterprise value? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. What is the stock price per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Bootstrap Corp. has yearly sales of $28.5 million and costs of $12.9 million. The company's balance sheet shows debt of $54.5 million and cash of $38.5 million. There are 1,960,000 shares outstanding and the industry EV/EBITDA multiple is 8. a. What is the company's enterprise value? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. What is the stock price per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Enterprise value b. Stock priceStep by Step Solution
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