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Chapter 10 - Q6: Please answer the following question in the image below. There may be multiple answers as noted by the empty boxes. Thank
Chapter 10 - Q6: Please answer the following question in the image below. There may be multiple answers as noted by the empty boxes. Thank you!
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: $2.00, EBITDA of $295 million, $30 million in cash, $41 million in debt, and 105 million shares outstanding. What range of prices is consistent with both sets of multiples? The range of prices will be: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $ (Round to two decimal places.) Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $ (Round to two decimal places.) After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: $2.00, EBITDA of $295 million, $30 million in cash, $41 million in debt, and 105 million shares outstanding. What range of prices is consistent with both sets of multiples? The range of prices will be: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $ (Round to two decimal places.) Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $ (Round to two decimal places.)
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