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reate an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate

reate an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page.

A company has the following most recent income statement:

Sales $10,000,000
- Cost of goods sold -6,000,000
Gross profit 4,000,000
- Operating expenses 3,000,000
EBITDA 1,000,000
- Depreciation 200,000
EBIT 800,000
- Interest expense 50,000
- Taxes 100,000
Net Income 650,000

In addition, the company had cash flow from operations of $2,000,000. If you were a financial analyst using the following five multipliers, what value would you put on the total common stock of the company in each of these five cases?

  1. Earnings multiplier = 25
  2. Cash flow from operations multiplier = 8
  3. EBIT multiplier = 21
  4. EBITDA multiplier = 15
  5. Sales multiplier = 1.6

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