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Suppose that in the end of January 2020, you have the following financial information about T Co. : Sales of $518 million EBITDA of $55.6

Suppose that in the end of January 2020, you have the following financial information about T Co. :

  • Sales of $518 million
  • EBITDA of $55.6 million
  • Cash of $100 million
  • Debt of $3 million
  • Number of shares 21 million
  • EPS of 1.65
  • Book value of equity of $12.05 million.

Assume that from a list of T Co.'s comparable firms you computed the following information:

P / E P / Book Equity EV / Sales EV / EBITDA
Average 15.01 2.84 1.06 8.49

  1. Using the average P/E multiple in the table, T Co. price per share would be _________ ($/per share).
  2. Using the average EV / sales multiple, T Co. price per share would be _________ ($/per share).

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