Question $3$

Suppose Company $x$ had an EPS of $$0\mathrm{.}20,$ sales of $$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 $2\mathrm{.}75,$ what is an

estimate of the price per share of Company X$?$

$$12\mathrm{.}00$

$$1\mathrm{.}00$

$$2\mathrm{.}86$

$$6\mathrm{.}55$