Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Comp 1 Comp 2 Comp 3 Comp 4 EV/EBITDA 12 11 12.5 10 P/E 19 18 20 17 After researching the competitors of EJH Enterprises,

Comp 1

Comp 2

Comp 3

Comp 4

EV/EBITDA

12

11

12.5

10

P/E

19

18

20

17

After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios. EJH Enterprises has EPS of $2.00, EBITDA of$300 million, $30 million in cash, $44 million in debt, and 102 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

$enter your response here.

(Round to two decimal places.)

Highest price within both ranges, the P/E and the EV/EBITDA ranges, is

$enter your response here.

(Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Principles Of Finance

Authors: PanOpen+OpenStax

1st Edition

1951283260

More Books

Students also viewed these Finance questions

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago

Question

State the uses of job description.

Answered: 1 week ago