Question
Please show all work. Your firm has outstanding debt equal to $278 million, cash holdings equal to $87 million, and 26 million shares outstanding. Your
Please show all work.
Your firm has outstanding debt equal to $278 million, cash holdings equal to $87 million, and 26 million shares outstanding.
Your firm is currently privately held, and you would like to use information from publicly traded comparables to estimate a price for your stock ($ per share). Your firm's expected 2021 EBITDA is $52 million. The industry median ratio of enterprise value to EBITDA is 7.5.
What is the (a) market-implied enterprise value of your firm and (b) market-implied price per share?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
978-1473766853, 1473766850
