Question $4$

Suppose Company $x$ had an EPS of $$1\mathrm{.}20,$ sales of $$480$ million, EBITDA of $$90$ million,

stockholder's equity of $$460$ million, $$15$ million of debt, cash of $$65$ million, and $140$ million

shares outstanding. Based on the industry EV$/$EBITDA ratio of $3\mathrm{.}25,$ what is an estimate of

the price per share of Company X$?$

$$2\mathrm{.}09$

$$2\mathrm{.}45$

$$7\mathrm{.}75$

$$1\mathrm{.}03$