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Suppose Rocky Brands has earnings per share of 2 . 3 0 and EBITDA of $ 3 0 . 7 million. The firm also has

Suppose Rocky Brands has earnings per share of 2.30 and EBITDA of $30.7 million. The firm also has 5.4 million shares outstanding and debt of $125 million (net of cash). You believe Jared's Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Jared's has no debt. If Jared's has a P/E of 13.3 and an enterprise value to EBITDA multiple of 7.4, estimate the value of Rocky Brands stock by using both multiples. Which estimate is likely to be more accurate ? Rocky Brandsstock value by using the P/E ratio is s Box per share. (Round to two decimal places.) Then, the value of Rocky Brands by using the P/E ratio is s Box million. (Round to one decimal place.)

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