Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider a company which had revenues of $47 million over the last twelve months. Depreciation and amortization expenses were $9 million. Operating margin was 30.4%.

Consider a company which had revenues of $47 million over the last twelve months. Depreciation and amortization expenses were $9 million. Operating margin was 30.4%. It has $26 million of debt, $7 million in cash, and 6 million shares outstanding. Comparable companies are trading at an average trailing EV/EBITDA multiple of 15. How much is each share worth using relative valuation? Round to one decimal place.

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

Forecasting Principles And Practice

Authors: Rob J Hyndman, George Athanasopoulos

3rd Edition

0987507133, 978-0987507136

More Books

Students also viewed these Finance questions

Question

Show analytically that if elasticity of demand satisfies E 0.

Answered: 1 week ago

Question

Be able to suggest some future options for human resources

Answered: 1 week ago

Question

Be able to create a contract for consultant services

Answered: 1 week ago