Question
Marylou Davis is estimating the intrinsic value of DemoRep, Inc. She has collected the following information. EBITDA is $204 million Value of outstanding debt is
Marylou Davis is estimating the intrinsic value of DemoRep, Inc. She has collected the following information. EBITDA is $204 million Value of outstanding debt is $300 million Shares outstanding are 20 million The enterprise value/EBITDA ratio is 8.0 The income tax rate is 35% Cash and marketable securities are $80 million Marylou should find the intrinsic value per share of DemoRep to be:
| A. | $62.60 | |
| B. | $81.60 | |
| C. | $66.30 | |
| D. | $70.60 |
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Analysis For Financial Management
Authors: Robert Higgins
6th Edition
0071181172, 9780071181174
