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Homework: Lecture 5 Homework (Ch 10) Question 4, P 10-16 (similar to) HW Score: 0%, 0 of 5 points O Points: 0 of 1 Save

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Homework: Lecture 5 Homework (Ch 10) Question 4, P 10-16 (similar to) HW Score: 0%, 0 of 5 points O Points: 0 of 1 Save 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 $290 million, $27 million in cash, $41 million in debt, and 102 million shares outstanding. What range of prices is consistent with both sets of multiples? C 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.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Comp 1 Comp 2 Comp 3 Comp 4 EV/EBITDA 12 11 12.5 10 P/E 19 18 20 17 Print Done - X Homework: Lecture 5 Homework (Ch 10) Question 5, P 10-19 (similar to) Part 2 of 3 HW Score: 60%, 3 of 5 points Points: 0 of 1 0 Save Suppose Rocky Brands has earnings per share of $2.16 and EBITDA of $30.7 million. The firm also has 5.7 million shares outstanding and debt of $130 million (net of cash). You believe Jared's Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Jared's has no debt. If Jared's has a P/E of 13.6 and an enterprise value to EBITDA multiple of 7.4, estimate the value of Rocky Brands stock using both multiples. Which estimate is likely to be more accurate? The value of Rocky Brands by using the EBITDA ratio is $ Rocky Brands' stock value by using the EBITDA ratio is S million. (Round to one decimal place.) per share (Round to two decimal places.)

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