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Question 3 Suppose Company x had an EPS of $ 0 . 2 0 , sales of $ 5 8 0 million, EBITDA of $

Question 3
Suppose Company x had an EPS of $0.20, sales of $580 million, EBITDA of $90 million,
stockholder's equity of $480 million, $13 million of debt, cash of $80 million, and 110 million
shares outstanding. Based on the industry Price to Book (P/B) ratio of 2.75, what is an
estimate of the price per share of Company X?
$12.00
$1.00
$2.86
$6.55
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