QUESTION 4

Consider a company which had revenues of $49 million over the last twelve months. Depreciation and amortization expenses were $8 million. Operating margin was 31.4%. It has $33 million of debt, $5 million in cash, and 12 million shares outstanding. Comparable companies are trading at an average trailing EV/EBITDA multiple of 21. How much is each share worth using relative valuation? Round to one decimal place.