Norfolk Southern Corp
Financial Statistics ($ millions)
	Operating Revenues		$10,863
	Operating Expenses		$7,730
		Operating Income	$3,133
		Operating Ratio (%)	71.2%
	EBITDA		$4,140
	Net Income		$1,706
	Return on Sales (ROS)		15.7%
	Return on Equity (ROE)		14.1%
	Cash		$433
	Assets		$33,527
	Debt		$9,496
	Equity (book value)		$12,129
	Debt-to-Total Cap (book)		43.9%
	Equity (market value)		$23,027
		Stock Price ($)	$76.40
		Shares Outstanding (basic)	301.4

The above table shows information of Norfolk Southern Corporation (NS). Calculate an estimated value for value of Norfolk Southern using the market multiples approach. Use the average EBITDA multiple of the two most recent railroad acquisitions (year 2008 and year 2010). (HINT: The estimated share/stock price of NS= {(EBITDA multiple X EBITDA)-debt} /Shares Outstanding)

Major Railroad Acquisitions and Transaction Multiples, 19952014
Acquirer	Target	Year		EBITDA Multiple (Total Enterprise Value / EBITDA)
Burlington Northern	Santa Fe Pacific	1995		9x
Union Pacific	Chicago Northwestern	1995		8x
Union Pacific	Southern Pacific	1996		14x
Norfolk Southern & CSX	Conrail	1997		14x
Canadian National	Illinois Central	1998		10x
Canadian National	Wisconsin Central	2001		10x
Canadian National	BC Rail	2004		9x
Canadian Pacific	DM&E	2008		13x
Berkshire Hathaway	BNSF	2010		9x

Group of answer choices

$120

$76

$115

$106

$92